Demonetisation Was A Failure! Banning Cryptocurrencies Would Yield Similar Fate?

in india •  3 months ago

In the past few days it has been known that demonetisation of currency notes in India is a major failure as it did nothing to meet it's objectives of removing fake notes and curbing black money. It did however impact informal economy in the country furthering issues.

It disrupted the unorganised sector and caused losses to several small and medium scale enterprises. Perhaps if this ill conceived plan wasn't executed Indian economy might have grown even faster. You can read why it was a failure here.

Demonetization-failure-modi (1).jpg


In the past few months we've debated the possibility of a ban on cryptocurrencies. As we stand the case against the central bank to overturn it's mandate on banning services to crypto exchanges in India is in the Supreme Court. There's a final hearing on the 11th of September, 2018.

In the months to come the Finance ministry and it's various agencies will need to figure out how to adapt to the changing financial systems of the world. Because people in India are using cryptocurrencies whether the government likes it or not.

There's a good chance that we're going to get a positive legislation surrounding use of cryptocurrencies in the next year or so. However, in the short term the notion of banning cryptocurrencies in India is just unfounded.

It's however being considered but since P2P systems allows anyone to enter and exist the markets without intervention from the government, there's no easy way to ban crypto use in India. Peer to peer payments via cryptos prevents subjugation from the government. This in itself is a tiny victory for us.

We're supposed to be democratic nation but the government functions in a very authoritarian manner forcing it's will upon us all. Blockchain and cryptocurrencies have the power to force them to think and act differently.

Representatives of the government have claimed in the past that cryptos are used to fund terrorists, corruption, money laundering, drugs amongst a whole bunch other things. All of this without ever mentioning how much FIAT currency is used for the same things. There are more good use cases for cryptos than these illicit activities but it's not easy for the government to accept all this without shooting itself in the foot.

Indians fought back very hard when it came to net neutrality and now we're fighting against the system to keep cryptocurrency trading alive and exchanges operational. There's nothing that the government can do outright that will force us to their whim and fancy!

As Nischal Shetty, CEO of WazirX puts it:

Phases you will go through as you fall deeper into the blockchain rabbit hole

  1. Blockchain will solve everything
  2. Blockchain will disrupt Uber, AirBnB, FB
  3. Blockchain will replace governments
  4. Blockchain will replace fiat
  5. Blockchain will create a parallel economy

If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:

  1. You Can Now Buy Your SteemFest³ Tickets!
  2. Why You Should Vote For @firepower As Witness—Witness Campaign Post From India!
  3. Steem.Chat Contest #41

Follow Me: @firepower

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Shared on twitter promoting good quality content on #Steemit. Stephen

#Promo-Steem #steemtalent #JoinSteemit #Steemit

Demonetisation Was A Failure! Banning Cryptocurrencies Would Yield Similar Fate? #steemtalent #JoinSteemit #Steemit @Steemit

#india #bitcoin #cryptocurrency #blog



Thank you :)

Very good post over Indian cryptocurrency legalization and demonetization. I like the thoughts you express. I also agree with quote of Mr. Nischal Shetty, CEO of WazirX.
Thanks of wonderful information.

I hope S-11 would be a good day and sets a great example for all.

Governments should only be concerned with illegal activities performed on blockchains. They're so easy to monitor, make privacy coins illegal and one can easily scan all transactions on Steemit, Bitcoin, Ether, etc. For suspicious activity.

I think this government is not ready to accept its mistakes. Now, they don't have much time to respond. Elections are near. So far their efforts have been insufficient. I think they should work wisely. Otherwise, public will teach them a lesson.

See Cryptos are the next big thing in market and India should not do the same mistake that it did with computers in this case. We were at least 10 years behind the world in accepting and it was not long ago that India was still surfing on 2G mode when the whole world had progressed onto 4G and 5G tech.
I think IT Ministry, the finance ministry ,RBI and head of all major banks needs to sit down churn out a plan on how it's adoption into the economy can be made possible.

@firepower - totally agreed.

the steps taken by the Modi government in the name of economic reform was one of the most destructive decision.Neither it has controlled extremist activity nor it brought out black money. The demoneytization was only a curse to the middle class and poorer. This is a paper base government, favoured by the paid media, and also well trained to stop the mouth of opposition. The government is running under its controlled machineries.

I share same sentiments as you do sir, blockchain is truly the hope of the future.. Any government that sees this prospects and turns it off, then so be it! As for me, I believe in blockchain. Bravo Mr @firepower

India ki govt kuch nahi samjata sir
Ban kar ke Bhi To trading hoti hai na
Please whatsapp me 7083874985

The worst part is that the criminal enterprises that were supposed to be effected by this never really gut stopped. But the small business got hurt pretty bad. To top it all off we have a "pink" banknote, that suspiciously feels like a 'pink slip' of getting fired from the job.

Frankly speaking, I feel like these are the small things that will eventually add up and push people towards a blockchain economy and decentralized tokenization.

Why the govt is keeping us in dilemma,they should do something.

Sir, I don’t think this is a failure. In other term if you see the money are stored are now in circulation. And now we who changed how many so have every data to catch up the culprit if government has that much of guts. What do you thing sir @firepower

@firepower, Absolutely true, firstly no matter what, everyone supported this Initiative of Demonetisation because, everyone thought that we had an new leader who hold the real thought of change.

But over the period every promise reflected as just words and literally speaking it gave real pain because, the most effected people were commoners and we also saw deaths in 100's after Demonetisation.

And the biggest words were, this is for fighting with the Black Money but in my opinion at last it's reflected as, commoners lost their control over their own money, and many marriages also got effected.

Yes, Cryptocurrencies are future no matter which country we are talking about because, truly the Decentralised System and Crypto Sphere will going to give that Financial Freedom and Financial Control. Let's hope for the great Crypto future.

Wishing you an great day and stay blessed. 🙂

The Indian government has supposedly wrapped up the administrative system for digital forms of money.

It is very sad that none of the government representative talk about drawback of Fiat currency, even it has more drawback than crypto.