India Cancels Cryptocurrency – It’s Really No Big Deal. Here’s Why.
Bitcoin plunged more than 10% at one point with most of the top 50 altcoins following suite (as usual) on the news India cancels cryptocurrency. Indian finance minister Arun Jaitley is quoted as saying “The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,”
At first glance, the news that India cancels cryptocurrency sounds like bad news. After all, Bitcoin became very popular in India after inexplicable currency controls rendered higher denominations of Indian currency worthless overnight. The government of India has some larger goal here with regards to their clamps on currency and cryptocurrency, in and of itself, is not the target here.
As India cancels cryptocurrency use within its borders the broader objective is not to ban Bitcoin or any other cryptocoin but to maintain a level of control over their currency unheard of in modern times.
Arun Jaitley has held various positions in government since the year 2000 and is known to be something of a rebel having gone against the establishment even so far as to argue for obstructing the parliament of India itself. Long known as a proponent of individual rights and freedoms, his announcement that India cancels cryptocurrency is puzzling to say the least.
So India cancels cryptocurrency. So what? As the headline above said – it’s no big deal. Although India holds prominence for a large volume of Bitcoin transactions, most of them are surprisingly small. To put this in perspective you need to consider how astonishingly low the average income of an Indian citizen is and, as a result, how little they actually spend…
India’s per capita income was $1670 ranking the country as placing 112th out of 164 countries according to The World Bank. As such, what COULD the worst possible impact be if and when Bitcoin and other cryptocoins disappear in India. Not much. Not much at all.
What we’re seeing here is the worst possible example of FUD — Fear, Uncertainty and Doubt.