Arthur Hayes Thinks Bitcoin Will Benefit If China And India Are the First To Ban Cash
In an interview with Vcentre Coinist, BitMEX CEO Arthur Hayes said that India and China may be the first to stop using physical cash in the economy, which would increase the adoption of digital currencies exponentially.
“In terms of vision, financial privacy will be dead in 5 years because, if you go to China and you need to buy, say, a drink at a bar, most places don’t take Renminbi or cash. You pull out your phone, you get on your WeChat pay app and scan a bar code. However, it’s a centralized company, Tencent, that has data on all these payments….the last frontier is money…I think China and India are going to be the first to do it but every government, whether the west or the east, will ban cash in the next five years…at that point people are going to discover what financial privacy really means.”
India has already experimented with demonetization in 2016. On 8 November 2016, the Government of India announced the demonetization of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series. Although the circumstances and the results of the ban still remain unclear.
An objective of demonetization was to formalize an economy where more than 90 percent of payments were made in cash. Electronic transactions went up sharply in November 2016 since most people had no option but to use digital wallets, credit cards or debit cards. The same can be expected with Bitcoin now.
However, there is news that suggests that Indian authorities might be banning cryptos. During the ongoing tussle between the governance and crypto community, the drafting committee never even tried getting someone from the crypto world on-board to help them understand what crypto promises and why it is the future.
India with 1.3 billion in a population where the majority falls under the criteria of youths surely possess both technical and human resources to make the country a hub for crypto progress.