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I might have missed it, but the article doesn't really seem to touch on the why of this. I get that they're thinking about launching their own digital currency,

by notamy 6y ago

I might have missed it, but the article doesn't really seem to touch on the why of this. I get that they're thinking about launching their own digital currency, and might just want to be rid of potential competitors, but is there any other potential reason for it?

christofon 6y ago
My guess would be the uncontrollable nature of CC and the resulting economic independence of actors in the system.
neartheplain 6y ago
Could it be a move to eliminate ways of hiding untaxed income, as with the 2016 snap cancellation of 500 and 1000 rupee bills? https://www.bbc.com/news/world-asia-india-41896865 https://www.bbc.com/news/world-asia-india-41896865
SideburnsOfDoom 6y ago
> I get that they're thinking about launching their own digital currency, and might just want to be rid of potential competitors A state wanting to continue to control currency, taxation etc seems like a fairly predictable and compelling reason though. It would be interesting if that's not the reason, but I don't think that we need to search hard for one.
deleted 6y ago
[deleted]
sodality2 6y ago
"Top Indian officials have called cryptocurrency a “Ponzi scheme”," probably has something to do with it. CNBC as well says "The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin while building a framework for an official digital currency." [1] 1: https://www.cnbc.com/2021/03/15/india-plans-cryptocurrency-ban-will-penalize-miners-and-traders.html https://www.cnbc.com/2021/03/15/india-plans-cryptocurrency-b...
spikengineer 6y ago
Most developing countries are at a high risk of capital flight by the rich and hence they regulate foreign exchange with Capital controls. India already has a cap of USD 250k limit on capital flight by individuals. Nowadays bitcoin is a common method to escape capital controls. This law will prevent capital flight by the rich which they earned with the patronage of Indian citizens and escape reinvestment locally
- sigmaprimus 6y ago
  Being somewhat of a "GoldBug", I recall back in the 90s there was a huge influx of "Indian" gold into the "West". It was identifiable from it's high purity and almost orange color, it was being carried out as jewelry and converted into real estate for the most part. My point being, as long as there is a will to move wealth, the holders will find a way around any restrictions imposed by the state and infact restrictions usually create whole industries based on Enforcement of, and Evasion of state imposed restrictions.
peteretep 6y ago
> the article doesn't really seem to touch on the why of this Turning this around, why _would_ a country want to allow people to make anonymous(ish) large digital transactions? This is the same government that outlawed some bank notes in recent memory.
JdeBP 6y ago
There are lots of guesses in other comments. There is in fact something that you missed, and it was back in 2018. You also missed the 2020 SC case. * https://www.forbes.com/sites/leezamangaldas/2018/04/18/understanding-indias-cryptocurrency-crackdown/ https://www.forbes.com/sites/leezamangaldas/2018/04/18/under...
perryizgr8 6y ago
AFAIK, alternate currencies are not allowed in India. It could simply be a matter of extending that law to digital crypto currencies.

by notamy 6y ago

christofon 6y ago

My guess would be the uncontrollable nature of CC and the resulting economic independence of actors in the system.

neartheplain 6y ago

Could it be a move to eliminate ways of hiding untaxed income, as with the 2016 snap cancellation of 500 and 1000 rupee bills? https://www.bbc.com/news/world-asia-india-41896865 https://www.bbc.com/news/world-asia-india-41896865

SideburnsOfDoom 6y ago

> I get that they're thinking about launching their own digital currency, and might just want to be rid of potential competitors A state wanting to continue to control currency, taxation etc seems like a fairly predictable and compelling reason though. It would be interesting if that's not the reason, but I don't think that we need to search hard for one.

deleted 6y ago

[deleted]

sodality2 6y ago

"Top Indian officials have called cryptocurrency a “Ponzi scheme”," probably has something to do with it. CNBC as well says "The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin while building a framework for an official digital currency." [1] 1: https://www.cnbc.com/2021/03/15/india-plans-cryptocurrency-ban-will-penalize-miners-and-traders.html https://www.cnbc.com/2021/03/15/india-plans-cryptocurrency-b...

spikengineer 6y ago

Most developing countries are at a high risk of capital flight by the rich and hence they regulate foreign exchange with Capital controls. India already has a cap of USD 250k limit on capital flight by individuals. Nowadays bitcoin is a common method to escape capital controls. This law will prevent capital flight by the rich which they earned with the patronage of Indian citizens and escape reinvestment locally

sigmaprimus 6y ago
Being somewhat of a "GoldBug", I recall back in the 90s there was a huge influx of "Indian" gold into the "West". It was identifiable from it's high purity and almost orange color, it was being carried out as jewelry and converted into real estate for the most part. My point being, as long as there is a will to move wealth, the holders will find a way around any restrictions imposed by the state and infact restrictions usually create whole industries based on Enforcement of, and Evasion of state imposed restrictions.

peteretep 6y ago

> the article doesn't really seem to touch on the why of this Turning this around, why _would_ a country want to allow people to make anonymous(ish) large digital transactions? This is the same government that outlawed some bank notes in recent memory.

JdeBP 6y ago

There are lots of guesses in other comments. There is in fact something that you missed, and it was back in 2018. You also missed the 2020 SC case. * https://www.forbes.com/sites/leezamangaldas/2018/04/18/understanding-indias-cryptocurrency-crackdown/ https://www.forbes.com/sites/leezamangaldas/2018/04/18/under...

perryizgr8 6y ago

AFAIK, alternate currencies are not allowed in India. It could simply be a matter of extending that law to digital crypto currencies.