India will be proposing a law to ban the trading, mining and even possession of cryptocurrencies. This comes after the country’s crypto trading volume has surged in the last few months.
After this news broke, the price of Bitcoin and other cryptocurrencies fell fast. Bitcoin hit a low of around $57,500 before stabilizing around $58,000. Ethereum fell from $1,880 to around $1,780, a 5% drop in a matter of hours.
Central banks are adapting to the fast growing world of cryptocurrencies. Other countries which have implemented bans on cryptocurrencies include China and Nigeria. The U.S. have mandated its residents to declare their crypto holdings and profits.
The need for central banks to control monetary policy via a self-controlled and self-issued fiat currency is important. This has set forth a motion for CBDCs to gain recognition among central banks. An outright ban on cryptocurrencies would only drive away innovations and skilled talents. Afterall, the world’s largest economy – the United States – was built on innovations.
A reconciliation is all the more urgent today as regulation and innovation converge. An outright ban just spells of desperation.
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