Sidharth Sogani, the CEO of crypto and blockchain research firm Crebaco Global Inc, makes a striking statement. He believes that India loses a market of around $ 12.9 billion if cryptocurrency is banned in the country.
How is that amount structured?
Sogani shares his findings with news outlet AMBCrypto. They wrote about this yesterday. Crebaco Global research agency has analyzed how much income companies generate if cryptocurrency would remain legally legal. The effect of Indian crypto companies that moved abroad due to the banking ban of the Reserve Bank of India was also investigated.
AMBCrypto reports that the turnover that India misses is structured as follows:
- The number of foreign companies where Indians hold a high position, such as directors, founders, CTOs: 93
- Based on the business plans and white papers, the amount of revenue expected is calculated: $ 4.9 billion
- They also searched LinkedIn for Indian blockchain programmers. That is 3500. Together they earn 2.1 billion dollars a year
- There are also 2650 Indian content writers according to LinkedIn. This would amount to $ 1.27 billion
- Various other functions: 4.5 billion dollars
Bill not to be enforced
A critical look at the figures shows that logic is sometimes missing in the calculations and that many assumptions are made. But nevertheless India is going to lose a lot of income. the report is based on the current market, which does not include the potential size of the cryptomarket of about 5 or 10 years.
Sogani believes that India will eventually be forced to regulate cryptocurrency rather than banning them on a large scale. It is unlikely that India will be able to enforce such a ban:
They will have to regulate it, because if they don’t, you may wonder how they will implement a ban on a population of 130 Crore. They don’t seem to have the means to do that, since there are 1.3 billion people living in India.
(Red .: a crore is 10,000,000, or ten million. For example, large numbers are indicated in southern Asia. Thirty million rupees are indicated there as 3 core rupees.)
Despite protest, still bill
The bill entitled “Banning of Cryptocurrency and Regulation or Official Digital Currency Bill, 2019” proposes a complete ban on any form of cryptocurrency. The committee responsible for the bill does recommend the use of blockchain and delegated ledger technology. The bill, of course, does not fit well with the Indian crypto community.
The chairman tweeted on the day of the official publication of the report:
Committee is very receptive and supportive of distributed ledger technologies and recommends its widespread use in delivering financial services. It also opens up for a possible official digital rupee. Private crypto currencies are or no real value. Rightly banned.
– Subhash Chandra Garg (@SecretaryDEA) July 22, 2019
Sogani also belonged to that concerned Indian crypto community. He gave a presentation to the committee and was unpleasantly surprised that they nevertheless recommended a ban.
“We have also submitted various reports to Indian governments and have consulted the Ministry of Finance (MoF) through presentations and reports. Nevertheless, it was surprising to see the concept. “