Is the Ban on CRYPTO possible?

 25^th November 2021

Is the Ban on CRYPTO possible?

Dear Fellow Travellers,

Namaste! Tons of words are written on the proposed Crypto Ban in our Winter Session since yesterday and all Cryptos have seen a big selling with the news. Many readers have requested to share our views on the same.

What is our View?

Our answer is – YES. The Ban on Crypto is possible. We have seen Demonetisation under Modi Ji. In history, we have seen one king shifting the capital of India to Dolatabad from Delhi. So, everything is possible in India.

Frankly – is the ban on CRYPTO possible? - is a wrong question. Not a single person who gave an opinion on the BAN in media – talked about the PRACTICAL aspects of the BAN on CRYPTOS.

So, I am dealing with the right question.

Is the BAN of CRYPTO practically Possible?

This is the right question.

We have seen what had happened practically when the physical currency was canceled with the aim of removing TERROR Funding and Black Money in 2016. Today the CASH in circulation is the highest in spite of all UPI payments facilities. So, the cash is still the king.  

When the Government had failed in controlling what was real PHYSICAL – how can they ban practically what is not seen or touched or felt?

Many writers have given their views without talking about the technology and objective behind the Cryptos.

Open Ledger Technology: -

If you go back to 2009, Bitcoin was invented – blockchain technology – to have a CONTROL FREE economy. The idea was that the money should not be controlled by any Government and Central Bankers. The power was given to the individual to keep his money in the form he wants and spend it the way he wants.

So, the TECHNOLOGY itself is not CONTROLLABLE by anybody. Forget about India or any other country.

So, BAN is NOT PRACTICALLY possible.

What was our Call since 2017?

We have maintained the call that all RESPECTIVE countries will come out with their own COIN and to make their own coin acceptable – they will try to BAN the other COINS. This was the biggest risk to the Crypto investors in the respective countries.

In India, you can’t spend in DOLLARS and in the USA you can’t spend in Rupees. You convert your money to the respective local currency when you travel to other countries. The same thing Government wants to do. They want their money to be in their coin and not other country's coin or coins like Bitcoin.

RBI is planning to come out with our own coin. If we BAN the CRYPTO – how will I convert my RBI coin to another coin? If I can’t convert – why will I buy RBI coins in the first place? I am making digital payments for my local purchase through UPI at this moment. Why I will convert my money into RBI COIN and pay for it digitally?

In India, there is a MADNESS for having a SON. Now, if all the couples have sons only – there will not be NEXT generation. Simple. The same way any coin can only exist, if it accepts the other coin.

So, if RBI wants its coin to be successful or market leader – Government will have to make it convertible to other coins. So, the BAN will not be PRACTICAL in this case also.

In the USA CRYPTO funds have started and it means it is legally accepted by the USA government. If India bans and all other countries do not BAN, the government will have a DEOMNETISATION experience once again.

Another Practical Aspect – which RBI is aware of: -

As per RBI permission – every individual is allowed to remit USD 2.5 lakh per annum to any other country for investments/education and other expenses. This is BLANKET permission and you don’t have to ask till you spend USD 2.5 lakh per annum of your TAX PAID money.

Now, tons of students are going abroad each year for their studies. Parents are transferring money to pay for their fees. It is quite possible that part of the tuition fees would have been invested into CRYPTOS in the countries where they are studying.

Many guys who have opened accounts with US-based exchanges or Outside India exchanges – can’t be BANNED.

In the last 10 years – tons of money have gone out legally and they might have been parked in Cryptos. How to know them? Banning them is another aspect.

As long as the RBI  window is open – BAN is practically not possible.

What NEXT?

Cryptos are part of the digital economy. You can love them. You can hate them but you can’t PRACTICALLY BAN them.

Happy Investing.

 

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Live With Passion…Invest With Passion.

Hitesh Parikh.