India is considering discouraging citizens from using cryptocurrencies. India has been going round and round on them without coming to any decisions.
India’s government created a professional group that a number of economists and others including central bankers, to look at bitcoin and other digital currencies. Now the group has told the Indian government that it ought to discourage people from using them.
Right now, India using more and more bitcoin because the Indian government has made it difficult for Indians to used cash. The government withdrew cash from society supposedly to combat money laundering and other crimes. It was supposed to replace the old cash but it hasn’t yet.
Thus there is far too little cash in India, and people are turning to cryptocurrencies. The government caused the problem but is now being advised to fix it by discouraging them. India’s situation is the result of meddling with money and the cure according to central bankers and others is to reduce alternative monetary methods.
Such battles in India are among the first of their kind but won’t be the last.