Coin's CEO: India's encryption ban may make more people want to hold cryptocurrency
Translator: Play the coin family ElaineHu
Since Bitcoin currently trades at a premium of $500 in India, Chan Chan's CEO, Zhao Changpeng (CZ) believes that India's decision to ban cryptocurrencies will only lead to more people turning to decentralized assets.
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Zhao Changpeng, CEO of the company, commented on India's latest anti-bitcoin bill on Twitter this week. The bill is designed to imprison anyone holding a cryptocurrency.
The more it is "prohibited", the more people want it. https://t.co/weOVZGCaz3
– CZ Binance (@cz_binance) June 22, 2019
The head of the world's largest cryptocurrency exchange argues that the new proposed ban on cryptocurrency will only make "more people want to own it."
This has become more and more obvious in the past few days. The spot price of Bitcoin on the Bitbns platform, one of the few remaining bitcoin exchanges in India, has reportedly reached around $11,120. This price is more than 500 US dollars higher than the average price of BTC in other markets around the world, and is currently $450 higher than the spot price of BTC.
Compared to other markets, this huge premium highlights the country's huge demand for bitcoin.
Bitcoin premium is still rising
In general, the premium of cryptocurrency is not surprising. According to Bitcoinist, last week, the Bitcoin premium of the Hong Kong Stock Exchange's Tidebit reached $160. But given the government's increasingly strong anti-encryption stance, the situation in India is particularly special. As the channels for buying Bitcoin are getting less and less, the scarcity and growing demand for Bitcoin seems to be pushing up the price of Bitcoin.
Bitcoin is still a typical representation of the Streisand effect in real life—the more people trying to suppress Bitcoin, the better it will develop. Although Indian legislators have made many efforts to limit the use of cryptocurrencies in the country, the appeal of this top-level cryptocurrency does not seem to stop growing.
This growing appeal has even shifted from retail speculation to mainstream institutions.
What led to the premium of Indian BTC?
But why is India's demand for BTC increasing? To protect the Indian rupee (INR), the Indian government has strengthened its capital control policy. However, as the country's debt scale continues to expand and inflation continues to increase, the expected result seems to be the opposite in terms of INR stability.
As a result, Bitcoin has become a safe haven for Indians to store their wealth, in case the Indian rupee has depreciated sharply.
In general, Indians do not have easy access to cryptocurrencies. As early as 2018, the central bank banned commercial banks from facilitating exchange transactions, so the platform could not use fiat currencies for transactions.
Despite the strong challenge to this policy, the Supreme Court has not yet made any ruling. The bank even further closed the accounts of customers engaged in cryptocurrency transactions.
Emerging digital payments have even surpassed Bitcoin, and there are reports that platforms such as Telegram and Reddit are being blocked in India. According to reports, some banks even stopped supporting PayPal payments.
Stop encrypted transactions, otherwise you may face the risk of imprisonment
India is even prepared to pass a law that completely bans all forms of cryptocurrency in the country. According to reports, the new law will prohibit the trading, holding and mining of cryptocurrencies.
Anyone who violates the law will face 10 years imprisonment and no parole. Such an initiative would even make India surpass China in anti-cryption regulations.
Projects like Facebook's Libra may not be allowed to operate in India, given that India's banking laws prohibit bank networks from facilitating cryptocurrency transactions. India’s crypto stakeholders say the government’s position will only push the industry underground.
Currency search: Bitcoin search engine www.btcsearch.com
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