There has been talk for a few weeks now of a possible Indian bitcoin ban as well as an Indian ban of all non-State sponsored cryptocurrencies to pave the way for an RBI (Reserve Bank of India) cryptocurrency. Now, according to the latest report from a senior Indian Finance Ministry official that stated, “Cryptocurrency isn’t fiat currency backed by the Reserve Bank of India, and its usage in all forms will be banned through the new law that will be introduced in Parliament,” India will pass legislation soon that will ban cryptocurrencies within the nation, a decision that will obviously significantly impact 7 million Indians that collectively hold more than $1 billion in cryptos. However, the details of the ban are still lacking. Will only trading be banned, or will ownership be banned as well? And if ownership is banned, will the Indian bitcoin ban try to force conversion of BTC and all other cryptocurrencies back into rupees, as was attempted with a Modi-led 2016 gold demonetization plan (that thank God, for Indian citizens, miserably failed)?
For years, my warnings about a country passing legislation to ban bitcoin have largely been ignored, even in this article I published more than eight years ago in which I explicitly stated, I “believe it is inevitable that bankers will attack the BTC network” that would pave the way for its banned use within nations’ economies. And for those that have always insisted that cryptocurrencies, and bitcoin in particular, could never be banned unless the internet was banned, as a completely illogical and not very-well-thought-out argument, especially since States had used legislation to effectively ban the use of gold and silver coins as money in the wider economy even as their State mints printed and sold them, the Indian bitcoin ban is about to prove my argument from years prior. Even despite these concerns, in November 2020, due to the positioning of some whales in the BTC market and future price action that I interpreted to be inevitable, I accurately predicted that BTC’s price would soar to $40k in 2021. Regarding gold, the law that prevents gold coins from circulating in any State run economy are laws that mandate that the value of a gold coin in any economic transaction is limited to not its market price but its exponentially lower face value.
At prices listed by most dealers today, for purchases of 1-ounce American gold eagles under a total of $20,000, a gold coin will cost about $1,990. However, were you to spend a gold coin in America, it is illegal for a merchant to give you any more credit than its face value or $50. Obviously, no one is going to pay $1,990 for a gold coin and accept $50 of credit when using it as money. And this is how legislation has effectively banned gold as money in the global economy.
The concerning aspect of this situation is that clearly, India is state firmly under the control of Central Bankers, as evidenced by India’s 2014 Aadhaar efforts to create a digital information database on nearly all 1.1 billion Indians (the population at the time, though it is now 1.3 billion) by collecting their fingerprints and retinal scans, as well as Indian PM Modi’s 2016 initiative to ban, overnight, the use of nearly 86% of all rupees in circulation at the time, a move that likely caused thousands of deaths, if not more, from the inability of the poor to buy food. At the time, former Indian Finance Minister P. Chidambaram ffered a scathing, angry and deserved critique of Modi: “you go there (rural areas of India) and the people ask ‘What digital?’ It is very difficult to get away with a lie. The best way to do so is to utter the biggest lie.” In this critique, Chidambaram refuted Modi’s claims that the poor in India still had access to money dispute Modi’s decree that wiped out 85% of cash in circulation due to India’s prior year efforts to digitize the economy that still gave access to poor people to digital money. Instead, Chidabaram refuted Modi’s claims as the “biggest lie” and claimed thousands, if not more, of the Indian poor would starve to death as a direct result of Modi’s decree.
Were I to decide between who to believe, Chidambaram or Modi in regard to ten thousand issued economic statements, I would believe Chidambaram ten thousand times to none over Modi. Recall that on my own news site, more than five years ago, I outed Modi as a liar for promoting a gold “monetization” plan that was, in reality, a gold demonetization plan and a State and Reserve Bank of India effort to confiscate physical gold holdings from Indian citizens and in turn, give them worthless paper with a meager annual interest rate that physical gold’s annual price appreciation was sure to far outpace. I also pointed out the comical nature of all the mass media outlets reference to Modi’s gold demonetization scheme as a gold “monetization” scheme, revealing the inseparable ties between mass media journalism and Statism.
In conclusion, the reason why India’s upcoming bitcoin ban and cryptocurrency ban is troubling is that India has always been a testing ground for global initiatives, including even their rapid conversion from a nation that Mastercard called among the worst prepared for a digital economy into one, less than a year later, in which 95% of all 1.1 billion (at the time) Indian citizens possessed a unique digital identification number based upon fingerprints and retinal scans that could be used for transactions in a digital economy. If you are wondering how the 2016 digital transformation of India was tied to the WEF’s great economic reset and global digital transformation initiatives, then please make sure you subscribe to my newsletter here and my podcast here (especially if you would like to listen to a special patron only podcast in which I explain how bankers use margin requirements in futures markets to artificially create price declines in gold and silver futures prices).
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Other fresh skwealthacademy content released this week: