What happens if India decides to prohibit cryptocurrency purchases?
It isn’t the first time the Indian government has considered prohibiting the use of cryptocurrencies. When bitcoin was originally introduced in 2013, the first few years were spent in secrecy. The technology was cutting-edge. This was a decentralised value store with no central authority.
Not just the government, but also eager investors, were gambling on the future of bitcoin. When this new financial asset made waves following the end of 2016, the Indian government reacted.
Any universal government is based on authority, power, and regulation. And bitcoin, or more accurately, cryptocurrencies, stripped the government’s power away. There was no bank, RBI, or government oversight of your funds. You owned an asset and made an investment, putting the money to good use and ensuring that your investment strategy worked for you. There was no advisory board, no policymakers, and no brainwashing. In 2017, bitcoin investment surged so rapidly that the Indian government was forced to intervene.
Bicycles were created when wheels were invented. We all assumed that this would be the case. Then came the motors, and we assumed they would be here to stay. The Wright brothers then came along and assured us that we, too, could fly. But none of this would matter once the finite quantity of motor fuel was depleted.
In a similar vein, we believed that sending letters was the finest method to reach further afield. Then there was a big bang. When the new millennium arrived, the internet had taken over the world. It is possible to communicate in milliseconds.
Let us now discuss what we cannot do when there is a prohibition. When we say ban, we’re referring to the halting of transactions between the bank and your crypto exchanges. This implies you won’t be able to use your local cash to purchase any type of cryptocurrency. This also means that you won’t be able to sell and cash out your HODL cryptos. This means that your HODLed cryptocurrency will remain on *HODL* until the ban is lifted.
But what if you give your cryptos to someone who lives outside of India and lives in a place where crypto is legal? In such situation, you can always transmit your newly obtained cryptocurrency to your bank and receive the equivalent INR. This exit procedure, however, would be costly. If there had been no prohibition in your own nation, the foreign exchange costs and penalties would have cost you more than the actual exchange fees.
However, you must still identify the catch in this situation. We can see that transactions involving crypto are still possible using the manner described above. No government will ever be able to control the internet. PUBG was attempted to be banned by the government. The Indian gaming community discovered VPNs that would still allow them to play PUBG. The government attempted to outlaw pornography, but anything that is open to the public or accessible over the internet can never be entirely controlled. The same may be said for decentralised and open source currency.
Unocoin is one such platform, allowing users to buy, sell, and exchange more than 40 different cryptocurrencies. When comparison to the features it offers, the transaction costs are extremely low. Unocoin has always observed and followed the laws enacted by the Indian government and the Reserve Bank of India. However, it also ensures that a smooth environment for crypto exchanges is created. As a result, Unocoin teamed up with Airtm to create a cross-platform transaction. Any Unocoin user can buy any crypto from either platform in return for his or her local fiat currency, and then convert his or her acquired cryptos into any crypto/fiat currency from the other platform using the pairing coin US dollar NSE 0.77 percent Tether ( USDT).
It’s like crossing a bridge, strolling across it, and crossing the river on the other side. The USDT can be used as a pairing currency or a bridge, allowing you to stroll from one end to the other and back.
While there are bitcoin speculations, cryptocurrency fans realise that these are just the ups and downs that come with their investment strategy. India will someday, sooner or later, be a country with no restrictions on cryptocurrencies.