Everyone in the crypto sphere is praying the Indian ban on cryptocurrency falls though. But, former CTO of Coinbase, Balaji Srinivasan might be the most concerned as he believes it would devastate the economy.
How would the Indian crypto ban be a “trillion-dollar mistake”? According to Srinivasan in an interview from Singapore, it would not only remove the opportunity to capitalize on an ever-increasing market, the ban would also drive investors out of the country.
These factors are especially important to India as it continues to develop technologically. And with 1.3 billion people, India is one of the largest untapped production markets in the world.
“I think India’s impact on the world is underpriced. That people don’t understand how big a deal it is going to be as opposed to any individual deal,” said Srinivasan.
Indian’s relationship with crypto teeters between trying to eliminate criminal activity and implementing blockchain technology into its financial sector using a national digital rupee.
In April 2018, the RBI (Reserve Bank of India) banned banks from dealing with crypto accounts only to be reversed by the supreme court 2 years later.
The same process might occur this time around with a ban reversal in 2025 or 2030, says Srinivasan, to save the economy and invite investors back in the country. This would come after the failure of a digital rupee as an international currency, something only real crypto can be.
A law to ban all private trading, owning, and mining of crypto will be decided in this budget session which ends by May. However, it may be fast-tracked using an ordinance law, by-passing parliament voting.