Can India Be The Next Digital Hub After China's Crypto Ban?

Can India Be The Next Digital Hub After China's Crypto Ban?

2021-11-14 | Mike Hallen

Can India Be The Next Digital Hub After China's Crypto Ban?

For a time, China's recent blanket ban sent the crypto sector into a frenzy. But, after all, don't we already know that Bitcoin and other altcoins excel at 'bouncing back'? Aside from speculations and potential, China's crypto crackdown in 2021 has been harsh. Despite being seen by analysts as a running joke that will eventually go away, the harsh attitude hasn't been very enjoyable for the traders. With the current revelation containing a variety of numbers, exchanges such as CoinSwitch Kuber reported a nearly 30% drop in weekend transactions the day after the ban was announced. But, as alarming as that may seem, the crypto market is projected to maintain its positive breadth, with nearly every player, including Bitcoin, Ethereum, and others, expected to emerge uninjured. Despite the fact that the restriction was announced at least three weeks before this debate, Bitcoin is currently trading at over $68000, poised for the next upward surge. Let's take a look at the chronology of China's crypto bans As a strong economy, China began enacting crypto transaction limitations in 2013, when the People's Bank of China (PBOC) prohibited banks from authorizing or even engaging in Bitcoin transactions. Payment gateways that facilitate crypto transactions were outlawed four years later, and even speculative trading was scrutinized. However, 2021 appears to be the most restrictive year for crypto in China to date, with the country banning crypto mining in June, sending out ominous signs in July, and eventually subjecting the entire space to something akin to a wholesale ban, restricting all activities, both within and outside its borders, that serve the Chinese population. A variety of factors have contributed to China's growing crypto prohibition. In a nutshell, China aims to eliminate any competition to its tightly regulated, closely watched, and openly centralized Digital Yuan. The startling revelation on September 24, 2021, however, appeared to be a frantic attempt to eliminate anything decentralized and transparent. But isn't it just being proactive? For the time being, China is defending its stance by claiming that crypto mining is causing an increase in power use. Surprisingly, the argument appears to be justified, since China alone accounted for about 75% of Bitcoin's total energy use in 2019. To be honest, being progressive is the only way India gains from China's crypto crackdown. Encouragement of crypto transactions, mining, NFT adoption, and even ICOs will be critical in fueling the country's crypto enthusiasm. Also, by the time you read this, a prominent Indian tea manufacturer's NFTs will be up for grabs, as will Megastar Amitabh Bacchan's NFTs. We don't know what more to say if that isn't encouraging. In addition, China's tough position on cryptocurrency has benefited Indian and worldwide investors by providing them with a plethora of purchasing options. Things have never been more positive, with prominent crypto-players setting fresh ATHs.

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