Posted 2 years ago | by Ben Armstrong
India Sends Mixed Messages on Cryptos
The Prime Minister of India just handed up and coming entrepreneur Harshita Arora an award for a newly designed crypto price tracking app. Prime Minister Modi has been a public opponent of cryptos, and also a very destructive force in the world of fiat currency regulation.
In 2016 Modi saw to one of the most poorly thought-out monetary events in recent history, when he decided to demonetize large denomination bank notes. The stated aim of the program was to stamp out tax dodgers and criminals, but the effect was a multi-year knock to the Indian economy.
The stance that Modi and the Indian government has taken to cryptos has been no less absurd. While India has one of the largest unbanked populations in the world, the Indian legal apparatus has done whatever it can to destroy the crypto industry in India.
India Needs Better Money Management
Cryptos have the advantage of being extremely accessible for poor populations. If a person needs to save money, it is easy to do with a crypto wallet. The same goes for money transfers. Sending cash with the established banking system is anything but cheap, and cryptos make it simple to do.
It would appear that Modi, and the rest of the Indian governance system is failing to deal with reality. India is being held back by archaic thinking which extends to its financial system. Instead of drive people into the banking system, Modi's idiotic 2016 move to outlaw banknotes had a horrific effect on some of the poorest people in the country, who couldn't easily enter the banking system.
The same thing is happening with cryptos in India, where the local Indian crypto industry has been all-but stamped out by a power-mad government. The simple fact is that the Indian government is ineffective on a good day, and terribly dangerous the rest of the time.
A Poor Excuse for Leadership
It is nice to see Modi handing out awards to gifted business people, but the sad fact is that India is going backwards at a frightening pace. The last few years have seen global growth stall, which is a bad omen for the Indian economy going forward.
The last thing that India needs is more backward regulations that do nothing more than hurt the most vulnerable people in India. Keeping viable digital banking options away from the poor will only serve to make their position worse, and stop any real innovation dead it its tracks.