🇮🇳 The India Ban 🇮🇳
The main purpose of the bill would be to prohibit anyone from holding their “private” cryptocurrencies. The main goal of this bill was to pave the way for the creation of an official digital currency that is issued by the Reserve Bank of India. The Indian Government wants to outlaw its citizens from holding their own cryptocurrency so that the RBI can issue their own Central Bank Digital Currency. This ban is not happening overnight. The government has given cryptocurrency investors a “transition period” of 3 to 6 months where they can liquidate their current cryptocurrency holdings. Perhaps the most likely route will be for them to completely restrict the exchange of fiat to crypto and vice versa. They could prohibit the cryptocurrency exchanges from offering their services.
🇳🇬 Nigeria Ban 🇳🇬
Nigeria has faced a great deal of bitcoin adoption over the past few years. This was the main rationale behind the move by the Central Bank of Nigeria to prohibit banks from dealing with cryptocurrency exchanges. Unlike the Indian ban, this one was more immediate. The Central Bank issued a straightforward directive that banks had to close any accounts of those individuals who were interacting with cryptocurrency Despite how abrupt the ban was, it appears to be less severe as that of the Indian ban.
🇨🇳 The Chinese Experience 🇨🇳
Despite this “ban”, China is one of the most crypto crazy countries out there. It’s also the epicenter of some of the most well known crypto exchanges, VC firms and Miners. It is also quite surprising that this is happening in China, which has some of the strongest internet security protocols out there. China was able to continue despite the ban thanks to users moving to OTC trading. I should point out that the ban was similar to the one that was implemented in Nigeria. Namely, the PBoC prohibited banks from dealing with exchanges and other businesses that provide a bridge between fiat and crypto. Chinese crypto dealing just moved away from the centralised crypto exchanges to these Peer to Peer dealers. Chinese citizens can just as easily buy crypto through these local dealers or if they want.
📈 Impact on Price 📈
There will be very little impact on the price of Bitcoin. When it comes to use in the country, it is only likely to increase adoption. Hence, those who hold Bitcoin in these countries are going to treasure it more. They are holding a rare international asset that they can store on a piece of paper – very hard for the governments to seize. The main negative price impact that this has on the Bitcoin markets is the FUD that surrounds it. Right after the RBI announced the ban, the Mainstream media pumped out articles Further evidence that you need to see that this is all FUD is the long history of the Bitcoin price with the China “bans”. You have a period of price volatility where the market digests the FUD. That initial Chinese Ban came in September of 2017 when Bitcoin was worth about $4,000.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.