India considers possible cryptocurrency turnaround
The gunshot may have been fired through the arc for bitcoin as a currency just a few weeks ago. El Salvador became the first country to accept the renowned Bitcoin cryptocurrency as legal tender.
And little by little, other nations could gradually open up as well, at least to the idea of Bitcoin and its brethren being used for trading within their borders.
China stands in stark contrast to this mindset, where a continued crackdown on bitcoin and bitcoin mining is a strategy that appears to pave the way for the issuance of a central bank digital currency (CBDC).
Governments, like people, can change their minds, at least a little. In India, lawmakers and regulators may be relaxing a bit on Bitcoin.
The new Indian express reported that Bitcoin could be classified “soon” as an asset class in this country and that legislation regulating cryptos could be passed during the monsoon session (which begins in July and ends in August).
If so, it would represent a significant turnaround from earlier positions that had been anticipated earlier in the year. As Reuters reported, the government was preparing to propose a law that would have banned trading or holding of cryptos. Earlier this year, the newswire reported that the government’s program “called for banning private virtual currencies such as Bitcoin while creating a framework for an official digital currency.”
The times are changing
And now, in a sign that things are changing, consider the fact that Coinbase, a crypto exchange that went public earlier in the year, is looking to strengthen its presence in India, hiring tech talent to do so with the crypto being offered as an incentive. Earlier this month, the company announced that it would offer $ 1,000 in crypto to help build a “high-quality tech hub,” as reported in a blog post. The company also said it was exploring “startup acquisitions and acquisitions” in India.
Regarding this incentive, the post said: “We are introducing a new program called CIkka – short for ‘Coinbase India Sikka’ – offering every new employee in India a one-time sum of $ 1,000 in crypto when they start. We hope they take advantage of this offering to learn more about crypto and use that knowledge to help us create the next generation of products that will delight our customers around the world.
It may be that China’s move (which, depending on how you see it, is either cautious or draconian) could free up flows of capital, talent, and interest (and maybe even mining?) .
In March, as India’s outright ban grabbed the headlines, the Herald of the Deccan reported that, according to Finance Minister Nirmala Sitharaman, “On our side, we are very clear that we are not closing all options. We will allow certain windows for people to experiment on blockchain, bitcoin or cryptocurrency. “
In this context, we can assume that it is the infrastructure, so to speak, that is of particular interest, where the eventual development of a national digital coin could be streamlined a bit. It would also give the Indian government more control over how this digital rupee would be administered and used. An outright ban on cryptos and development means would be a bit difficult to get there.