Forbidden to forbid? – In Indiaand like everywhere in the world, the central bank is very hostile to Bitcoin (BTC) and cryptocurrencies, which are seen as competitors to their privilege to coin money. Although now the country seems to prefer 30% taxation on the juicy profits generated by cryptos, some are still wanting the banishment plain and simple.
“Destabilizing” crypto-assets to be banned urgently?
What happens to the Indian central bank (RBI) is a bit like what happened to the Central Bank of Russia. The latter wanted banish totally the cryptocurrencies of the country, but the economic reality of the benefits brought by mining quickly calmed him down in his ardor.
In India, central bankers risk suffering a humiliation similar. Indeed, the Minister of Finance is much more interested in tax revenue – 30% on capital gains made through crypto – only by a silly and nasty prohibition.
The RBI does not admit defeat, however, and continues to show its teeth against Bitcoin and its ilk. Shri T Rabi Sankardeputy governor of the Reserve Bank of Indiasaid in a speech on February 14:
“(…) cryptocurrencies cannot be defined as a currency, an asset or a commodity; they have no underlying cash flows, they have no intrinsic value; they are akin to Ponzi schemes, and may even be worse. »
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Fear of the collapse of the rupee against Bitcoin?
Paradoxically, the central banker also mentions everything that makes the qualities cryptocurrencies decentralized, universaland resistant to censorship (certainly because in his eyes, these are reproaches):
“(..) crypto-technologies are driven by a philosophy aimed at escaping government controls. Cryptocurrencies were specifically developed to circumvent the regulated financial system. That should be reason enough to treat them with caution. (…)”
Do without banks and their gigantic economic crises – like that of 2008 – was indeed the goal of Satoshi Nakamoto, inventor of Bitcoin. And the philosophy of Cypherpunks is actually protect the digital privacy of individuals in the face of authoritarian states. Moreover Mr Sankar admits it:
” [les cryptomonnaies] can (if allowed) destroy the monetary system, the monetary authority, the banking system and, in general, the government’s ability to control the economy. »
A more than attractive program for a libertarian or one anarchistbut not for a globalist, It’s certain ! All this to come to what the central banker asks the ban cryptocurrencies like “the wisest choice (sic) offered to India”.
Will the Central Bank of India once again see itself contradicted by politicians? At the end of 2021, while the RBI was still calling for a ban on cryptos, the Indian Prime Minister was instead talking about the importance of a international cooperation to properly regulate crypto-assets.
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