The last couple of days has been pretty weird for me as I am witnessing how bad the Reserve Bank of India wants Cryptocurrency banned in India. They are downright getting so desperate it's not even funny anymore. First of all RBI Governor calls Crypto a worse Bubble than the Tulip Bubble and the worth of Crypto being even less than a single TULIP but at the same time, he states that Crypto may destabilize the current Financial Stability of India and it doesn't require a Financial Guru to see that those two statements contradict each other completely. How can something that is worth even less than a Single TULIP destabilize an Economy? It's really getting funny but at the same time, I can't ignore the ways RBI is going towards getting Crypto Banned in India.
Now on the flip side, I do know that Banning Cryptocurrency is practically not possible but what is possible is to limit the Users that deal with Crypto on a daily basis as let's be real even though we can use VPN's and get through the barrier the Government puts us there would be like 4 out of 10 people willing to go through all that stuff just to be part of the Revolution. Worst case scenario we might just get another Banking Ban here in India and another Court Hearing taking us 2 more years to get out of this DILEMMA.
PS: The reason why RBI thinks Crypto may destabilize the Economy may be the fact that Banks are giving us around 4-5 percent on our Money as Interest while DEfi's are providing APR's on Stablecoins as high as 100 percent while 20 percent is on the lower scale.
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Why do these countries keeps misbehaving?? Even Nigeria banned crypto
They are just losing on Major Money in form of Taxes. They are definitely on the Losing end here as people will just keep on Investing.
Banning cryptos will not solve any of their problems, on the contrary, their problems will only get bigger. It will inevitably have negative effects on crypto markets in the short term. But I think those who ban will see more harm than crypto markets. It's surprising to hear these ban ideas still in today's world.
Banning will just be a backstep for the Country. The max they can do is limit some users but I am sure a lot of users will still deal with cryptos. In fact, the Country will lose on a Majority of Taxes as most people will be evasive if Crypto gets Banned.
I wrote an article on this topic today. By applying fair and appropriate taxation on crypto earnings, they can bring huge gains to the country's economy. Otherwise, people will hide their assets or move them to other countries and there may be an increase in the informal economy.