🔴OFFICIAL REPORT on Crypto Ban & New Digital Rupee Cryptocurrency from Indian Govt

So now I’d like to bring up this
complete report of the committee that
proposes specific actions to be taken in
relation to virtual currencies and this
document once again was published yesterday
on the 22nd of July 2019. And I’ve
highlighted a few points that I found
quite interesting in this report and the
first one is that they distinguished
countries into being three types right
now there are countries with no
legislation when it comes to virtual
currencies there are countries that have
legislative or regulatory framework on
virtual currencies and there are
countries that have imposed outright
bans or restrictions on virtual
currencies and once again this is
something that this committee is
proposing that the government also does.
The government in this case is being
advised to outright ban all
cryptocurrencies in the country and if
we move on further into the document so
this was part of the speech that was
delivered by the Union Finance Minister
in his budget speech in 2018 and this
just highlights what blockchain has
brought to the table of finance today.
And the potential that comes from
blockchain technology. I personally found
that to be relatively positive that at
least to start with the government
committee is recognising the importance
of blockchain technology and the
importance of eradicating intermediaries
and how that can lead to greater
efficiency in the economy if not in
peer-to-peer transactions. So just keep
that in mind and we’ll move forward into
the paper. Once again they mentioned that
as an introduction because they want to
introduce the importance of what they
call distributed ledger technologies and
they say that distributed ledger
technologies allow the recording sharing
and transfer of data or value without
the need for a central record keeping as
in the case of a traditional ledger so
once again they’re just mentioning that
“We can now move out of the Stone Age
type finance system and move into
something that’s much more efficient &
much more better, and we think that we
can draw inspiration from what Bitcoin
has done for the last 11 years. And let’s
start using that technology for our own
benefit”. That’s what they’re trying to
say in my opinion. If we move further
into the paper, then
one more thing is they mentioned a
cryptocurrency is a subset of virtual
currencies and it’s decentralized and
protected by cryptography. They’re just
defining in their opinion on what a
cryptocurrency is or should be and they
also mentioned that other than Bitcoin
there are other several cryptocurrencies
that have emerged in the last years as
we all know and they also funnily
mentioned that as of date there are
around 2116 cryptocurrencies with a
market cap of 120 billion US dollars.
This is clearly very out of date. When I
look right now at coinmarketcap I can
see that there’s a total market cap of
over 280 billion dollars. The committee
recognizes that while technological
innovations including those underlying
virtual currencies have the potential to
improve the efficiency and inclusiveness
of the financial system – once again
saying that blockchain does have
potential in making things better –
virtual currency in and of itself does
not have any of the benefits associated
with fiat currency. Pretty sure that a
majority of us are going to disagree with
what they’ve mentioned here. I’ve
highlighted it in red because I cannot
agree with that last part of the
sentence in any way in any form from any
at all. Anyway they also mentioned that
virtual currencies can be used to
defraud consumers particularly
unsophisticated consumers or investors
so they’re trying to say that a lot of
people might end up buying scam projects
like BitConnect although BitConnect was
worth over a billion dollars at some
point. I do personally believe that
markets are excellent sources of
eradicating scams eradicating bad
projects and eventually it is the good
projects that do exist this is something
we’ve had for many many many decades now.
Markets is not something that should be
introduced to the government of India –
this is something they should have
already understood. Ayway it looks like
the FATF once again something that I
discussed in my previous videos has
influenced many parts of this document
and they mentioned that the FATF has
observed that on account of the
anonymity associated with virtual
currencies or cryptocurrencies they are
vulnerable to money laundering and use
in terrorist financing
activities while also making law
enforcement difficult. I know there was a
study that was done that showed that
terrorists actually don’t know how to
use cryptocurrencies. They either don’t
know how to use computers properly or
are not educated enough to use Bitcoin
or any cryptocurrency efficiently or
properly without getting caught and I
have to mention that many
cryptocurrencies especially Bitcoin are
pseudo anonymous which means that you
can trace things back to where that
transaction came from who sent you that
money you can actually track these
terrorists down using cryptocurrencies
if they’re gonna use Bitcoin to finance
illicit behavior illicit activities
private companies like chainalysis for
example are providing services to
governments and institutions for
conducting these chain analyses the
committee recommends that all private
cryptocurrencies accept any
cryptocurrency which may be issued by
the Government be banned in India. Yeah
we know that already as we move further
into the document I must mention some
parts of the document are actually
pretty good at mentioning what has
historically happened with
cryptocurrencies with blockchain
technology and Bitcoin it was quite
interesting to go through it we can only
hope that the rest of the government
reads this paper and tries to understand
virtual currencies and someone has the
common sense to say that guys we might
be making a mistake banning everything
outright may be this extreme
decision-making is not a good idea maybe
we should do something in between or
maybe we should just legalize it and see
what happens with markets if we move
further into the document you can see
how they’ve mentioned what different
jurisdictions around the world have done
when it comes to cryptocurrencies how
some countries have outright banned it
well just China basically and how some
other countries have taken a different
approach to cryptocurrencies and they do
acknowledge that they have considered
these different jurisdictions and what
they have done to come up with their
conclusion although I must say it
doesn’t seem like they were really
influenced by the positive nations when
it comes to crypto the countries that
are more accepting of crypto they do
speak about how different crypto
projects have used blockchain
technologies for various purposes
and once again they do keep on
mentioning their opinion how it hasn’t
really proven that blockchain is
something that should be legalized or
something that should be allowed they do
go into quite a lot of detail regarding
what they describe as central bank run
digital currencies or CBD seized and I
think what they’re trying to say
ultimately is that we don’t need to rely
on Bitcoin we don’t need to rely on
other cryptocurrencies that the rest of
the world is using we can have our own
cryptocurrency that has what they think
is exactly the same benefits as other
cryptocurrencies as Bitcoin has but it’s
created and it’s issued by the Reserve
Bank of India who ultimately will have
centralized control over this currency
that will be created out of thin air
which they describe cryptocurrencies as
being created out of thin air so the
recommendations that it’s given to the
committee is that it has an open mind
regarding official digital currencies
and that the Reserve Bank of India
should always be in charge of this
digital currency that they’re proposing
to create and they’ve also summarized
the different parts of this report they
do summarize their opinion on virtual
currencies their opinion on other
cryptocurrencies they do indicate
cryptocurrencies with a lot of
negativity they call them as being
issued abroad they call them as being
private as having no intrinsic value at
all I can’t see how bitcoin can be
referred to as a private cryptocurrency
it’s not a private cryptocurrency from
any angle that I see in if you see in a
private viewpoint then please do let me
know in the comment section below
they also specifically mentioned there
is no fixed nominal value of these
private cryptocurrencies I think what
they’re referring to is the volatility
that we see in cryptocurrencies a lot of
the things they’re saying about
cryptocurrencies is extremely inaccurate
and it’s potentially going to be
misleading for future legislation in the
country of India and it’s definitely not
a good thing this should be highlighted
by the people of India to the government
if at all this is possible and this is
definitely something the government
should really really look into properly
and try and understand properly not just
because this
committee that is led by one single
centralized person has come up with this
opinion it doesn’t mean it’s going to be
scientific fact it’s clearly not a lot
of it is inaccurate. So that’s it for
this episode. I hope you found it very
useful! Make sure you hit the like button
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video if you found it useful. I will
continue covering the indian scene of
cryptocurrencies in the future, so make
sure you do stay tuned and do have a
lovely week. Thanks a lot for watching
see you guys!

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