Why the government and traditional media houses in India need crypto-savvy people to help them make more informed choices when policy-making and reporting on #crypto? A rant / thread: (1/29)
(2/29)
Based on the current narratives coming out from government sources and mainstream Indian media, it is likely that there are gaps in understanding the scale and complexity of developments that have happened in crypto after 2017.
Based on the current narratives coming out from government sources and mainstream Indian media, it is likely that there are gaps in understanding the scale and complexity of developments that have happened in crypto after 2017.
(3/29)
Some common refrains that I have been hearing from 2017 till today are - "ponzi", "blockchain-good-crypto-bad", "private currency", "terror funding", "capital flight", "all cryptos are currencies", "Chinese control", "used by criminals", "untraceable",…
Some common refrains that I have been hearing from 2017 till today are - "ponzi", "blockchain-good-crypto-bad", "private currency", "terror funding", "capital flight", "all cryptos are currencies", "Chinese control", "used by criminals", "untraceable",…
(4/29)
…"difficult to tax", "subverting national sovereignty", "threat to INR" and similar inaccuracies.
…"difficult to tax", "subverting national sovereignty", "threat to INR" and similar inaccuracies.
(5/29)
While the rest of the world is getting laser eyes, we are stuck discussing the semantics of Dogecoin:
While the rest of the world is getting laser eyes, we are stuck discussing the semantics of Dogecoin:
https://twitter.com/TCR_news_/status/1360557988025487363. It is not uncommon to read wonky terms like “Bit Coin” and “Crypto-currency” in reputed publications. So how did we get here?
(6/29)
Some background - After a massive crypto price rally in December 2017 followed by an influx of sketchy ICOs, there were a series of scams that spooked the central banking authority in India. An Inter-Ministerial Committee was formed right after.
Some background - After a massive crypto price rally in December 2017 followed by an influx of sketchy ICOs, there were a series of scams that spooked the central banking authority in India. An Inter-Ministerial Committee was formed right after.
(7/29)
The IMC researched for a year and came out with a report (dea.gov.in/sites/default/…) in early 2019. It recommended a complete ban of crypto (dea.gov.in/sites/default/…) and urged the government to consider adopting a sovereign CBDC. It seeded the idea of blockchain-not-crypto.
The IMC researched for a year and came out with a report (dea.gov.in/sites/default/…) in early 2019. It recommended a complete ban of crypto (dea.gov.in/sites/default/…) and urged the government to consider adopting a sovereign CBDC. It seeded the idea of blockchain-not-crypto.
(8/29)
These recommendations have played a key role is moulding national discourse and narratives in mainstream media since the 108-page report is one of the few documents regarding crypto in India that had the government's ratification which gave it the edge of being a…
These recommendations have played a key role is moulding national discourse and narratives in mainstream media since the 108-page report is one of the few documents regarding crypto in India that had the government's ratification which gave it the edge of being a…
(9/29)
…credible piece of literature. Based on the report, @RBI ring-fenced banks from offering services to individuals and companies dabbling in crypto. This was challenged in Supreme Court and the Court gave a ruling in 2020 overturning RBI's directives.
…credible piece of literature. Based on the report, @RBI ring-fenced banks from offering services to individuals and companies dabbling in crypto. This was challenged in Supreme Court and the Court gave a ruling in 2020 overturning RBI's directives.
(10/29)
This gave a momentary reprieve to scores of entrepreneurs, coders, computer engineers, cryptographers, artists, writers, freelancers, content creators, YouTubers, traders etc. who are part of the crypto ecosystem (7M+ Indians as of last count - indiatoday.in/technology/new…).
This gave a momentary reprieve to scores of entrepreneurs, coders, computer engineers, cryptographers, artists, writers, freelancers, content creators, YouTubers, traders etc. who are part of the crypto ecosystem (7M+ Indians as of last count - indiatoday.in/technology/new…).
(11/29)
We are currently in 2021 & the same recommendations from years ago are back to haunt us with the spectre of a possible ban again. They have now been forwarded unchanged to be tabled as a Bill in Parliament. The world has changed since 2017. Crypto has changed manifold.
We are currently in 2021 & the same recommendations from years ago are back to haunt us with the spectre of a possible ban again. They have now been forwarded unchanged to be tabled as a Bill in Parliament. The world has changed since 2017. Crypto has changed manifold.
(12/29)
The recommendations didn't. There are several concerns with them. Here are just a few -
1. CBDC is proposed as a replacement of all cryptos out there. But CBDC is just INR in digital form while crypto is quite something else.
The recommendations didn't. There are several concerns with them. Here are just a few -
1. CBDC is proposed as a replacement of all cryptos out there. But CBDC is just INR in digital form while crypto is quite something else.
(13/29)
Instead of replacing INR, crypto is bringing the internet of finance to India (balajis.com/how-india-lega…). Banning crypto in favour of CBDC would be as absurd as banning pineapples to make way for apples just because they sound similar.
Instead of replacing INR, crypto is bringing the internet of finance to India (balajis.com/how-india-lega…). Banning crypto in favour of CBDC would be as absurd as banning pineapples to make way for apples just because they sound similar.
(14/29)
Crypto"currency" doesn't mean all cryptos are currencies. The bucketing of all cryptos into a single bracket based on the semantics of "currency" seems lazy. It is not just a trading instrument which is meant for speculation with no use-case.
Crypto"currency" doesn't mean all cryptos are currencies. The bucketing of all cryptos into a single bracket based on the semantics of "currency" seems lazy. It is not just a trading instrument which is meant for speculation with no use-case.
(15/29)
Looking at it purely from a financial settlement perspective is short-sighted. It’s almost like the committee was unaware of utility tokens, governance tokens, #NFTs, #DeFi, #DeFiDe, metaverses, blockchain names etc.
Looking at it purely from a financial settlement perspective is short-sighted. It’s almost like the committee was unaware of utility tokens, governance tokens, #NFTs, #DeFi, #DeFiDe, metaverses, blockchain names etc.
(16/29)
2. The committee behind the proposals was lacking in representation of someone with a technology background. It would have been prudent to involve people from crypto as advisors/members in the committee before recommending something as abruptly harsh as an outright ban.
2. The committee behind the proposals was lacking in representation of someone with a technology background. It would have been prudent to involve people from crypto as advisors/members in the committee before recommending something as abruptly harsh as an outright ban.
(17/29)
3. The term "private cryptocurrencies" looks to have gained popularity after the report was published. Rarely has there been reference to crypto as “private cryptocurrencies” elsewhere. A sovereign crypto issued by a central bank isn’t technically public.
3. The term "private cryptocurrencies" looks to have gained popularity after the report was published. Rarely has there been reference to crypto as “private cryptocurrencies” elsewhere. A sovereign crypto issued by a central bank isn’t technically public.
(18/29)
Rather, most “private cryptocurrencies” (as per the committee’s definition) are actually public blockchains that allow node participation from one and all.
4. The recommendations mentioned an alignment to the Chinese stance - ban crypto and bring in CBDC.
Rather, most “private cryptocurrencies” (as per the committee’s definition) are actually public blockchains that allow node participation from one and all.
4. The recommendations mentioned an alignment to the Chinese stance - ban crypto and bring in CBDC.
(19/29)
However, this is highly inaccurate since crypto was never banned in China. Just ICOs were. Trading and holding cryptos are very much allowed there. So, it is anyone’s guess how the committee said in the report that crypto is completely banned in China. Not like China...
However, this is highly inaccurate since crypto was never banned in China. Just ICOs were. Trading and holding cryptos are very much allowed there. So, it is anyone’s guess how the committee said in the report that crypto is completely banned in China. Not like China...
(20/29)
...is the best example anyways. My assumption is, the committee deems anything that is not legal tender to be the same as being banned for transactional purposes. Again, this probably stems from the concern raised in Point 1. They are only looking at crypto as “currency”.
...is the best example anyways. My assumption is, the committee deems anything that is not legal tender to be the same as being banned for transactional purposes. Again, this probably stems from the concern raised in Point 1. They are only looking at crypto as “currency”.
(21/29)
5. The committee is bullish on blockchain but not on crypto. This is problematic. A blockchain without a crypto is effectively a centralised permissioned chain with no public participation. Private individuals and groups decide on governance.
5. The committee is bullish on blockchain but not on crypto. This is problematic. A blockchain without a crypto is effectively a centralised permissioned chain with no public participation. Private individuals and groups decide on governance.
(22/29)
It’s just a sophisticated database owned by an enterprise. These chains are sometimes dying slow deaths: coindesk.com/ibm-blockchain…
It’s just a sophisticated database owned by an enterprise. These chains are sometimes dying slow deaths: coindesk.com/ibm-blockchain…
(23/29)
In light of this, the crypto industry participants have had to run from pillar to post explaining nuances to everyone (
In light of this, the crypto industry participants have had to run from pillar to post explaining nuances to everyone (
https://twitter.com/PareenL/status/1362273384973824002) and working on awareness campaigns (#IndiaWantsCrypto, #IndiaWantsBitcoin, indiawantscrypto.net).
(24/29)
Massive crowdsourced efforts to build educational literature are underway (
Massive crowdsourced efforts to build educational literature are underway (
https://twitter.com/NischalShetty/status/1360560531828920327). Everyone is worried sick. So many man-hours, energy and emotional capital being spent on just trying to get the basics across to decision-makers and opinion-makers.
(25/29)
The same could have been spent on BUIDLing actual products (yes, we BUIDL and HODL in crypto) and thereby generating capital for India. The worst thing this ban could do is lead to a significant brain drain.
The same could have been spent on BUIDLing actual products (yes, we BUIDL and HODL in crypto) and thereby generating capital for India. The worst thing this ban could do is lead to a significant brain drain.
(26/29)
And now there’s news that the government could end up taxing and then banning crypto which would be like adding salt to unnecessary wounds: in.news.yahoo.com/india-plans-tw….
And now there’s news that the government could end up taxing and then banning crypto which would be like adding salt to unnecessary wounds: in.news.yahoo.com/india-plans-tw….
(27/29)
So, this is a request to @RBI, @DasShaktikanta, @FinMinIndia, @nsitharamanoffc, @Anurag_Office, @nsitharaman, @ianuragthakur, @SubramanianKri, @sanjeevsanyal, @NITIAayog, @amitabhk87, @RajivKumar1. We have a rare opportunity to get it right this time.
So, this is a request to @RBI, @DasShaktikanta, @FinMinIndia, @nsitharamanoffc, @Anurag_Office, @nsitharaman, @ianuragthakur, @SubramanianKri, @sanjeevsanyal, @NITIAayog, @amitabhk87, @RajivKumar1. We have a rare opportunity to get it right this time.
(28/29)
There are many experts who are working tirelessly to spread knowledge with positive intent. Why not lend a patient ear to even one of them? -
There are many experts who are working tirelessly to spread knowledge with positive intent. Why not lend a patient ear to even one of them? -
@balajis, @NischalShetty, @smtgpt, @inkparadox, @PareenL, @sathvikv, @j_bindra, @nixxin, @SunnyRayShow, @bvharish, @AjeetK, @jrtechlaw, @AnoushBhasin, @ashish343, @ThatNaimish, @Tabassumnaiz, @Shaanush, @CryptooAdy, @howdy_akshay, @BuddhaSource, @watsubram /fin
My bad. Small correction:
Thank you @ThatNaimish
https://twitter.com/ThatNaimish/status/1363036808133533701
Thank you @ThatNaimish
A curious case about the IMC recommendations that went unmentioned in the thread. As pointed out by @HulkIsBest, the final report saw a reversal in stance from a previous draft:
https://twitter.com/HulkIsBest/status/1363042169196453888
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