India is, in fact, helping the US to maintain its global financial dominance and power by banning decentralized cryptocurrency. If the USD is no longer used as a global trade accounting standard they will not be able to put sanctions on countries forbidding them to trade in oil etc. They will no longer be able to influence the global economy by randomly printing dollars without having any Gold in the federal bank to back it. At present, if all countries went back to the gold standard, the US would probably be one of the poorest countries and would no longer have the power to influence other countries or interfere with their internal affairs. They would not be able to dictate who trades with whom for their own selfish purposes.
American congressman Brad Sherman feels that Bitcoin is a threat to the financial power of the US. He says that Bitcoin needs to be “nipped in the bud”. While Sherman also cites concern (like the Indian Government) that cryptocurrency is being used for illegal activities like money-laundering, drug-dealing, and tax evasion he also mentions that it takes steps to undermine the power of the U.S. dollar.
Says Sherman, “An awful lot of our international power comes from the fact that the U.S. dollar is the standard unit of international finance and transactions. Clearing through the New York Fed is critical for major oil and other transactions.”
“It is the announced purpose of the supporters of bitcoin and cryptocurrency to take that power away from us, to put us in a position where the most significant sanctions we have against Iran, for example, would become irrelevant.”
“So whether it is to disempower our foreign policy, our tax collection enforcement or traditional law enforcement, the advantage of crypto over sovereign currency is solely to aid in the disempowerment of the United States and the rule of law.”
The US wants to ban decentralized currency because it feels the power of the US dollar is at stake. Well, that is the core purpose of Bitcoin – To replace the centralized global financial system run mostly by the federal bank in Newyork since all international transactions are made in US dollars. Are we aware that when India pays Iran for crude oil we pay mostly in USD and not in INR? Any weaponry purchase of our country from any other country is all done in USD. The USD is the default mode of payment across all countries’ governments for everything. This gives USD the utmost power in the global financial system. This is why all currencies of the world end up pegged to the US dollar!!
So it’s obvious why the US government would want to ban decentralized cryptocurrencies. But what is India’s excuse? The reasons being given for the ban hold no weight. Either the Indian Government is giving these reasons because they truly do not understand crypto themselves or they are trying to negatively influence the general public of India who is struggling to understand crypto. The Kashmir police also issued an advisory – “The general public is informed not to make any type of investment in cryptocurrencies, virtual currencies (VCs) such as bitcoin because there is a real and heightened risk associated with them,”
Every crypto transaction especially Bitcoin can be easily traced since the blockchain stores all transaction data. The only way people can be cheated is when they buy crypto without research on buyers or sellers. This reason however also holds true for all assets be it stocks and bonds, mutual funds or property. The other reason was given about tax evasion also does not hold weight because if crypto transactions are facilitated through bank account people will have to declare their income as they would for any other asset as well. Plus, banks mandate a KYC which means no transaction that goes through a bank will go unrecorded. The RBI shutting down crypto exchanges only increases that risk rather than reducing it since people will try to buy crypto by hard cash exchanging hands…which will not be traceable. Furthermore, disruptive activities are funded by untraceable fiat hard cash and not by the very transparent, traceable cryptocurrency.
So technically, neither India nor any country’ government has a valid excuse to ban crypto besides the fact that it will affect their own centralized, government-controlled currencies and give power to the common man, which controlling powers do not want. Brad Sherman’s statement clearly says so.
It’s high time the Indian Governments (irrespective of which party comes into power) realized this and actually steps up to do something for India and her citizens. If India adopts a decentralized currency which is independent of powerful governments, banks, and entities the GDP and the value of the Indian Rupee will increase. The core ideology of Bitcoin is decentralization – no control from any centralized authority like a government or a bank. Bitcoin, if given a chance, can fairly replace the gold standard.
The Governments of the world, however, will have to unselfishly relinquish power (centralized currency system) for the betterment of its citizens and forget about any personal gain. This will bring true economic freedom to the world.