Tim Draper: The Ban Enacted By RBI Is Stupid And It Would Lead To Loss Of Talent In India
Central bank of India announced last week that it prevented banks from doing business with entities that carried out cryptocurrencies. Tim Draper, a Billionaire who was an early investor in companies like Skype and Baidu was not happy with the Indian government taking a stance against Cryptocurrencies, opposed the decision, calling it a “big mistake.”
Draper had just returned to the Indian trade market after the country’s prime minister, Narendra Modi,
made a public vow to fight corruption.According to Draper, India would benefit greatly from cryptocurrencies and in particular the underlying Blockchain technology. He says that cryptos would allow the government to be more transparent and accountable to the public at large, as well as improve efficiency over several levels.
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https://bitzamp.com/tim-draper-the-ban-enacted-by-rbi-is-stupid-and-it-would-lead-to-loss-of-talent-in-india/I followed this news as India is a potential market for crypto due to its huge internet using population. This step the Central Bnak of India is indeed a stupid decision. They mentioned that they banned the payment gateways and banks from facilitating Crypto transactions. But they havn't banned cryptocurrencies. Thus, trading cryptocurrency is still legal in India. Now, here comes the corruption. Since, traders can't trade using payment gateways and banks, thus, the trade will be done using cash and monitoring cash transactions isn't at all viable. Thus, leading to easy money laundering and corruption. At least, through banks RBI was able to track the money flow into cryptocurrencies. Now, that is not at all possible. Also, many expected that now Indians will stop trading in cryptos. But surprisingly, many biggest Indian exchanges witnessed 2x-4x Bitcoin volume increase. Also, the price didn't suffer at all.
