2021-05-12 19:06:08
Have We Discussed 'WazirX' Yet? As if folks in India haven't been hit with enough bad news - Binance has taken it upon themselves to ensure to compound the misfortunes of anyone foolish enough to use this crypto exchange over there.
Here's a full write-up about that here: https://librehash.org/wazirx-another-crumbling-binance-entity/
- "
But I thought that cryptocurrency in India was banned"
Not quite. And the 'ban' proposed is not an anti-crypto measure. India's economic health (especially now in light of recent events), is still more so on the fragile side of things.
Contrary to what you see in the U.S. and other nations with stronger economies, many of India's leading national banks have been forced to source their own funding from FDI (
foreign direct investment) over the past few years.
This hands-off approach by the Indian gov't created a largely inconsistent, discordant financial system that screwed India in a couple of ways:
1. Weak financial institutions in certain regions / areas have severely limited the financial options available to affected citizens in the region. In laymen's terms, you could be a brilliant developer, innovator, etc., but that may all be for naught if the major financial institution in your region is incapable of providing a substantive loan / other advanced financial management options one may need to take things to the 'next level'. For those that live in countries not impacted by this issue, this is sometimes a "perk" of one's national banking system that's taken for granted.
2. Many financial institutions in India are not weak due to incompetency, but rather a lack of support from the national government in years past. If you're a U.S. citizen, then you likely remember the sweeping measures the Federal Reserve passed in the aftermath of the '07/'08 Recession as well as the March '20 market panic. These measures largely
saved the American economy from an inevitable fate of doom. Many major financial institutions in India have had to seek outside investment to compensate for the lack of superfluous funding from the national core itself. But even this proves difficult as many foreign investors are hesitant to spend substantial sums of money within the Indian market (in some regions) without a guarantee of strong infrastructural support by the gov't itself.
India's Crypto Stance is Part of a Wider Recalibration of the Nation's Financial Ecosystem
All of this is written from the perspective of someone that is
not a citizen of the state of India (so take it with a grain of salt) - but research gives the impression that India has taken great strides over the past few years to rectify some of these errors in judgment to ensure that the nation is in a position to be a major competing force before the end of the next quarter century (2025-2050).
The talent, education, and innovation are obviously there - its just a matter of harnessing that potential, which is easier said than done.
No nation is perfect by any means and, to an increasing extent, we're all tied to one another in some way by virtue of globalization, technology propagation, etc.
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