Ban bitcoin in India 'would be disastrous' for economy, says businessman

Sandra Loyd

Businessman Raj Chowdhury, chairman of finance consultancy HashCash, stated that a ban on bitcoin (BTC) would have “disastrous” consequences for the Indian economy.

According to In a PRWeb publication, Chowdhury stated that BTC is “the most important currency that has ever been seen in history around the world”, to which he also added that, of not having reserves of the cryptocurrency , the Asian country would end up suffering a very serious devaluation of its currency.

The statement by Chowdhury, CEO of a company that provides services based on blockchain technology, is given in a context of official uncertainty regarding the regulation of cryptocurrencies in India.

In recent times, the Minister of Finance Nirmala Sitharaman explained that the government does not rule out absolutely to crypto assets and hinted at the possibility of authorizing individuals to “experiment with the blockchain and bitcoin n. ”

Something similar had been expressed in February by the Minister of State for Finance, Anurag Singh Thakur. As reported by CriptoNoticias, the official denied that it was evaluated to ban cryptocurrencies and, instead, clarified that the intention is to curb their illicit use.

Companies must inform their cryptocurrency holdings

Precisely to combat this illegality in the digital world, on Wednesday March 24, the Government of India published a statement in which it establishes that companies in the country must report their possession of bitcoin and other cryptocurrencies. The measure will come into effect as of April 1, 2021.

This provision covers all those companies that have carried out crypto-asset transactions in the fiscal year. In this way, they will be forced to detail their profits and losses, as well as they will have to report the exact amount of cryptocurrencies they possess at the time of submitting the report.

Investments do not slow down despite uncertainty

Despite rumors of a cryptocurrency ban, Coinbase announced on Wednesday that it plans to start providing services from India . This would include IT services, engineering, software development and customer care operations, as the exchange’s own blog post reports.

In the article, it is highlighted that the Asian country has always been an epicenter in terms of engineering and technological innovation. Without mentioning the rumors of the government’s banning of cryptocurrencies, the company whitewashed its intention to open a physical headquarters as soon as the sanitary restrictions due to the Covid-19 pandemic allow it.

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