Crypto ban to hurt 5 mn Indians and thousands of developers into Blockchain
Some economic analysts predict a big change in crypto is forthcoming as institutional money enters the market. Moreover, there is the possibility that crypto will be floated on the Nasdaq, which would further add credibility to blockchain and its uses as an alternative to conventional currencies.
Bitcoins are created digitally through a “mining” process that requires powerful computers to solve complex algorithms and crunch numbers. They are currently created at the rate of 25 Bitcoins every 10 minutes and will be capped at 21 million, a level that is expected to be reached in 2140.
Blockchain used to focus solely on its applications in cryptocurrency, blockchain today imagines a world of incredible possibilities. Industries from finance and energy to artificial intelligence (AI) are exploring new and exciting ways to leverage blockchain technology. Crypto is predicted to be a USD 10 trillion industry in the next five year and India’s Blockchain sector has received USD 5.3 million in VentureCapital funding to date.
India is home to 19,627 #Blockchain developers, the second largest hub in the world after the United States and a report says, the World Economic Forum estimates that 10% of the global GDP will be stored on Blockchain-based platforms by 2027.
Cisco has issued a report that brings some interesting insights from the world of blockchain. According to the report, blockchain has the potential to hold as much as 10 percent of the world’s gross domestic product (GDP), which means that several trillion dollars worth of value could be stored on both decentralized and permissioned blockchains by 2027.
While the crypto industry keeps going up and down, blockchain technology continues to advance and could very much become the norm for many industries within a couple of years. The blockchain industry has been on the rise since its inception in 2008 and is permeating into every niche imaginable, from supply chains to copyright management. According to International Data Corporation (IDC), the market for blockchain spending will be expanding to $9.7 billion per year by 2021. This is four times what was spent in 2018, which saw $2.1 billion go towards blockchain projects.
In the opening of its report, Cisco states: “Although blockchain has the potential to transform the business landscape, important challenges to wider adoption remain. First, platform standards need to be established that meet the complex needs of the enterprise. Furthermore, customers are looking for industry-specific solutions to transform their business processes. Finally, interconnectivity of multiple independent blockchain networks is needed to unlock the true value of blockchain.”
Cryptocurrency has been recommended by the G20 and the Financial Action Task Force, the global anti-money-laundering watchdog and on the other side, India has proposed a bill "Banning of Cryptocurrency and Regulation of Official Digital Currency"… and this is pending since last couple of years…
It is the right time for India to promptly work on our policy and publish. Every country has their own set of challenges. India is prone to illegal trades, smuggling and terrorism using the darknet and thats where Bitcoin plays a big role because of the anonymity of both , the users and the crypto. This can impact our economy and compromise our national security.
Its good that Bitcoin is not legal in India or else with a hostile neighbour, we would have been forced to fight a parallel battle. Having said that, Blockchain is not just about Cryptos or Bitcoins, there is more to it- for eg:- Enterprise Applications using Private/ Permissioned Blockchains.
The "Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019" draft has proposed a 10-year prison sentence for anyone who "mines, generates, holds, sells, transfers, disposes, issues or deals in cryptocurrencies”. Trade in cryptocurrencies was a regulatory grey area in the past, giving many enterprising individuals a new avenue for investment. Despite the volatility in its value, many lay investors took to crypto, even paying tax on profits from trade.
Experts says that, an arbitrary decision to criminalize investing in digital tokens could destabilize existing businesses which have been operating legitimately, eroding the wealth of millions. “If the bill becomes a reality then India would be the first large democracy to ban an innovative technology such as crypto. Over 5 million Indians own crypto assets worth thousands of crores. They'll have to simply dispose it off and lose all their wealth,” he says.
While the use and trade of cryptocurrencies has increased in India over the years and with the volume and value of trade in crypto increasing - however modestly - the loss in tax revenue to the exchequer is likely to be substantial.
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