Economic Times Implores On Indian Authorities To Embrace Cryptocurrencies, Not Block Bitcoin
Although there are plans to release a digital rupee, there is reportedly a plan to ban cryptos altogether in India. For several years, India’s politicians and elites have been the impediments to a thriving crypto industry in the country.
The government through the Reserve Bank of India (RBI) has been coming up with regulations that have crippled the Indian crypto industry. Orders emanating from RBI has seen various banks give warnings to crypto customers.
It is now becoming clear that the politicians and the banking elites feel threatened by the cryptos and are not ready to embrace them soon. However, there are a number of crypto enthusiasts who are determined to educate the public about cryptos and why they should push the government to enact crypto friendly laws.
One of the most widely read publications in India, The Economic Times is leading the campaign to inform the public about cryptos with the latest Op-ed.
An editor at Economic Times, TK Arun, run an opinion piece that will no doubt irk the authority figures curbing the crypto movement. The piece titled “Why India should not outlaw cryptocurrencies” comes at a time when the RBI is allegedly proposing to ban cryptos.
Arun says that the idea of jailing crypto holders in the Asian country sounds ‘myopic’. The editor asserts that RBI should be working on breaking away from the US dollar stranglehold. Arun explained:
“India needs to be open to the possibility of using cryptocurrencies for international payments bypassing the dollar.”
Think Beyond Bitcoin
The author urges the authorities to think beyond Bitcoin and see the advantages that stablecoins linked with fiat currency offer. Arun, refers stablecoins as a subgroup in the crypto framework hinting at some of the differences they have with Bitcoin.
Arun emphasizes on the fact that stablecoins are pegged to fiat currencies that are operated by banks as well as other financial entities. He explains that stablecoins bring stability in the sector and can be used in settling international payments where a US counterparty is not involved. This will help to break the dollar stranglehold.
He says that the creation of a payment system that side steps the dollar is imminent as the US has weaponized the use of the dollar in settlement of international payments. He gives an example of the recent spat between the US and Iran which has seen sanctions against Tehran being imposed.
According to the author, the sanctions stipulates that any enterprise dealing with another that has done business with Iran, even indirectly, will be denied access to the dollar payment system. He continues:
“No bank can afford to be cut off from access to the dollar. So, no bank would deal with anyone that deals with an entity on which the US has declared secondary sanctions. The dollar is a powerful weapon in the hands of the US that it can wield against anyone it wants to.”
The author posits that a blockchain-based currency is the only possible solution to deal with the weaponization of the dollar system.
He, thus urges India to quit coming up with a legal system that inhibits the creation of a payment system that works outside the dollar system. He however says that policies should be made to prevent illegal and fraudulent ways like money laundering and thefts in the crypto space.
He says that rather than banning cryptos, India should be on the lead to encourage other nations like China and the EU as well as international institutions to develop an international payment system outside the dollar framework.
What’s your take on Arun’s courageous move to challenge the Indian authorities on their hard stance on cryptos? Share with us in the comments section.