On November 8, India will be entering a new era of financial reform of crypto when they push the long-awaited demonetization of the country’s cash. The government is looking to rid the nation of its 300 billion rupee ($5.5 billion) worth of “black money” and is planning for a period in which people will no longer be able to exchange funds on a one-on-one basis in order to prevent large sums from being hoarded and used for money laundering.
This will be the biggest overhaul of India’s economy in decades and the first change to a major currency since the country adopted the rupee in 1950. But what does this change mean for the average Indian citizen? Will it be as easy as turning off a switch? What are the mechanics of the demonetization and what will happen if you don’t have enough cash to pay for your groceries or medicine?
We asked chief correspondent Amarjot Singh on how all this works, what people should do, and where we might see some unexpected consequences of this historic decision.
This is part one of our two-part video series. Watch the second part here true britain.org/video-series
What are the crypto coins that Indian users can no longer use?
After the Indian Government announced a ban on cryptocurrencies, they released a list of the coins that are now banned. This includes bitcoin, ether, and many other coins. The ban is meant to help eliminate the black market for cash in India by taking away the ability to transfer money anonymously with an unregulated currency.
The ban was announced on Monday, May 14th. The reason for the ban is very simple: it is meant to boost the economy of India by making it easier to track and control all transactions using cash. In this way, they can stop terrorist funding, money laundering, and drug trafficking. However, it is causing a lot of harm to the people who are buying these coins in other countries and then trying to sell them.
What Are the Coins That are Banned? The major coins that are banned are the gold-based ones. These are clearly Bitcoin and Litecoin, along with all of the other altcoins that are based on these two currencies. Other cryptocurrencies that have similar characteristics to these currencies will also be banned if they have been recently issued.
The ban is in place for at least a year, and could be extended even further if necessary. Why Was the Ban Announced?In order to stop terrorist funding, money laundering, and drug trafficking, India announced
Why was the decision to ban crypto made?
The Indian government banned crypto transactions in the country before their demonetization process. They issued a statement saying that they wanted to protect the citizens and fight terrorism. The announcement came shortly after India’s richest man, Ambani, announced that he had invested over $600 million into Bitcoin. Crypto Beginnings
India is one of the countries that has always been very interested in technology. They have always been at the forefront when it comes to new technologies or products that are coming into the market. There are multiple examples to this fact, such as investing in Fintech, AI, and even robotics.
For example, India was one of the few countries who invested in internet companies like Google and Amazon before they became global giants. This is why it made so much sense for Ambani to start investing in Bitcoin and other cryptocurrencies.Vinod Khosla is the cofounder of Sun Microsystems.
He was also a member of the US President’s Council of Advisors on Science and Technology, which is a position that he held from January 2016 to January 2017.Khosla has been giving speeches in India about cryptocurrencies and their impact on technology. He has stated multiple times that digital currencies could be a key factor in making countries economically stronger. Blockchain
How will the crypto ban impact users in India?
The Indian Government has decided to ban the use of any cryptocurrency. They are hoping that this will force citizens to turn in their existing coins for fiat currency before the demonetization process begins on November 28.
However, many experts have warned that this could only lead to “an avalanche of speculation” and a loss in value for citizens who have held onto their coins since the beginning. India’s Government Bans Crypto. The Indian government has banned cryptocurrency and plans to seize all funds held by citizens who use digital currencies. In a statement released today, Finance Minister Arun Jaitley said that the government is “in no way concerned with any individual who chooses to invest or trade in cryptocurrencies because these are not legal tender” — however, he made clear that trading digital currencies is against the law.
He continued: “The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate their use or sale in the country.” The Indian government is making strides to control the growth of cryptocurrency, which it worries could result in widespread fraud, tax evasion and money laundering.
It’s not clear how exactly the South Asian nation plans to crack down on the market; there are no laws against trading cryptocurrencies in a domestic market. However, it seems likely that the central bank will be tasked with shutting down exchanges and ensuring that banks do not transact with virtual currencies.
There is strong opposition to the Indian government’s stance on cryptocurrencies. A number of exchanges have pledged to shut down their operations in the country, which could cause a huge problem in liquidity. As a result, the value of Bitcoin and other cryptocurrencies plummeted by 30 percent by mid-week.
The country isn’t alone in its effort to clamp down on digital currencies; China has also taken steps to rein in trading while Japan is expected to crack down as soon as next month. The majority of cryptocurrency trading occurs on the South Korean exchanges, which is why the country will be so influential in that respect.
Bitcoin Cash Will Be Name of Third Currency for Day Trading The two most popular digital currencies were down by about 10 percent on Tuesday, with bitcoin falling to a low of $6,000 and Ethereum shedding 12 percent. There is still good news for some cryptocurrencies as Bitcoin Cash broke records on Monday when it surged by almost 50 percent over the weekend and has continued to gain support. In fact, BCH’s value
Larger implications of banning crypto
India has finally moved away from their old system of paper money. The government plans for people to go electronic, meaning today the government is banning all cryptocurrencies.
This means that citizens will not be able to buy cryptocurrencies with their current bills and coins. This could have larger implications for India, as cryptocurrency has the potential to replace or supplement the old financial system.
Watch This Is Video In Youtube
After India announced its popular cryptocurrency ban, the country’s central bank also announced that it would be launching a legal framework for cryptocurrencies shortly.
This means that the government will have to regulate cryptocurrencies in order to protect investors and avoid any future scams.