Indian economy may lose $12 Billion with crypto ban. Sidharth Sogani, the CEO of CREBACO Global Inc, made the statements yesterday to ambcrypto.com.
In a recent report by ambcrypto, a crypto news outlet, Sogani made the claim that India may lose out if they ban cryptocurrency. According to estimations, the country may lose 84,000 crore rupees of the crypto market if they go forward with the ban.
This estimate comes from the Sidharth Sogani, CEO of CREBACO Global Inc., a crypto and blockchain-centered analytical firm. The perform continuous estimates on the cryptocurrency market. The estimate that they have given does not bode well for the crypt community.
The bill is scheduled to be tabled in the parliament next week.
Rumours were flying since March that a ban on cryptocurrencies was proposed. A leaked document by an Inter-Ministerial Committee also gave credence to the rumours.
The final report was released on 22nd July 2019 and confirmed the rumours. The draft bill titled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019” proposes a complete ban on any kind of cryptocurrency even though the committee recommends the push for adopting blockchain and Distributed Ledger Technology. They even recommended an indian digital currency based on blockchain, which is very hypocritical.
The RBI circular
Crypto exchanges were under stress due to the RBI circular in late 2018 banning all banking institutions from working with cryptocurrencies. While the matter was taken to the Supreme Court of India, the case has only seen postponement.
Many crypto exchanges have closed down due to the pressure from the government. Indian economy may lose $12 Billion with crypto ban if the bill is passed.
With the slowing economy, the ban would further exacerbate the state of employment in the country.
Crypto Kanoon, a crypto legal entity posted this on twitter.
Crypto Ban will make 000’s of:
From the ambcrypto.com report
Sogani also quoted that data on the trading volume on Binance between Jan 2018 and Dec 2018 from Indian IPs amounted to a whopping 7.9%, which shows that the Indian crypto community is quite substantial.
As per the CREBACO research, the estimated revenue generated through crypto in India from various sectors include:
- The No of Companies dealing in crypto and blockchain which are incorporated overseas which have Indians on board as Directors, Founders, CTOs, CFOs, etc. are said to be around 93.
- Amount of revenue to be generated as per their whitepapers and business plans – 4.9 Billion
- No of expert Blockchain Coders – 3500 (Data from LinkedIn)
- Approx. Salary per project – $6,000 USD on avg age; total – $2.1 Billion
- Content Writers – 2650 (Data from LinkedIn)
- Approx. per article 100 USD x 4 = 400 x 12 = 4800 = 12,720,000 ($1.27Bn)
- Miscellaneous Job Opportunities (which includes Media Houses, Start-Ups, Bloggers, Blockchain professionals, lawyers, Cas, Event Managers, Rent, and others along with class 2 and class 3 executives and labors) – $4.5 Billion
“We have submitted several reports to the Indian governments as well and have consulted Ministry of Finance (MoF) through presentations and reports. In spite of all that, it was surprising to know the draft bill news.”
“They will have to regulate it, because if they don’t, it will raise a question as how they will implement a ban on a population of 130 Crore people” Sogani said. “They dont seem to have the mechanics of doing that, given India is country of 1.3 billion people.”Sidharth Sogani, the CEO of CREBACO Global Inc
Despite Mr. Sogani’s optimism, the bill seems to be going ahead as planned. It may well lead to the Indian economy losing $12 Billion with crypto ban.