Cryptocurrencies Not Worth Regulating, Should Be Banned, Says Indian Ex-Secretary
India's former secretary of economic affairs considers that cryptocurrencies are too much of a menace to simply regulate and should be banned outright from the country.
Pouring more gasoline into a fiery discussion regarding India’s internal cryptocurrency policy, an economic expert in the country comes out and says that the entire phenomenon should be banned.
“Let us accept that it would not be possible to regulate [cryptocurrencies] effectively. Because they will do transactions from their houses. You cannot enter every home to check what transactions are going on. So, I think this is a serious challenge, and this should not be allowed at all,” said Shaktikanta Das, India’s former economic affairs secretary.
Considering that the country has remained a largely cash-happy economy despite the government’s efforts in previous years to curtail cash transactions and encourage people to move to digital purchases, the same could be said about most of India’s economy.
Cash transactions have been notoriously difficult for governments around the world to trace, making them probably the most widely-used tool by criminals and money launderers wishing for something quick and mobile to conceal the sources of their finances.
Granted, cryptocurrencies like Monero and Zcash make this a bit easier.
Das continues his interview with Quartz by using an argument for legality:
“[Cryptocurrency] is a parallel currency system developing and it is not legal. There is no legal provision which backs up these transactions. There is the danger of cryptocurrencies leading to money laundering, terror financing, and unaccounted transactions. It will pose a serious threat to the financial stability not only of India, and in fact more, in the case of the developed world,” he added.
It’s not a given that the Indian government would take Das’ words into consideration. However, he still has a role in the 15th finance commission, which is tasked with oversight on the government’s finances.
Interestingly enough, India’s crypto sector appears to be booming, with a sharp increase in the number of cryptocurrency and blockchain-related jobs in the country’s online market.