- November 15, 2018
- Posted by: Jay
- Category: BitCoin, Cryptocurrency
If you are reading this article, there is a high probability that you believe that bitcoin and crypto currency are here to stay. So, it is with a chuckle that I mention a recent article on Ethereum World News reporting on India’s attempts to ban bitcoin.
India’s attempt to ban Bitcoin highlights the disconnect with technology that government officials can have. In a country that has strengthened its economy on the outsourcing of highly skilled and technical talent, you would think that someone at the top would recognize the technical and enforceability obstacles with a ban of bitcoin. And although the article does not specifically address India’s attempt to ban all cryptocurrency, I’m assuming that is the case.
The Indian government may, if they choose, be successful in banning Indian exchanges, which I believe is short sited given that we see other governments embracing cryptocurrency. However, they won’t stop their citizens from trading and holding cryptocurrency on the world stage.
Thankfully, there is evidence that smarter minds will prevail. The issues and concerns with banning bitcoin are being opposed with more reasonable solutions. It cites that experts within India, taking a page out of other government playbooks, are lobbying for the government to focus on regulations to protect its citizens, rather than attempt to ban.
In searching to see who else is in the news banning cryptocurrency, I came across another interesting read that asked a similar question, “Why isn’t Bitcoin banned everywhere?”. And what I believe is the most plausible reason is that bitcoin and cryptocurrency in its entirety is simply not a threat to a governments sovereignty. Government of India, please take note.
Governments can exercise firm control over the fiat on ramps and off ramps. Governments with virtually unlimited resources compared to you and I can also track down cryptocurrency owners. Although, there are private coins, most cryptocurrency is pseudonymous. If you are using cryptocurrency that is involved in nefarious acts, you can be identified through analysis of habits, patterns, and other means. Private may not be as private as you are led to think. And that’s given that the exchanges don’t report suspicious activity at on and off ramps for fiat. Given that KYC is becoming the standard, it’s not easy to be anonymous. So as much as some would like to think about cryptocurrency liberating the people from their governments, real implementation has yet to be a threat to government.
What’s to be learned in the FUD and FOMO environment is that cryptocurrencies are not going anywhere. The trend by governments is to cautiously embrace cryptocurrencies. And there is no reason to believe that the direction will change.