Bitocoin: has taken a price hit since it is being ban from India as an “illegal method of payment within their payments system”
Arun Jaitley, India´s finance minister has, for a couple of weeks, declared that cryptocurrencies are not legal tender, therefore one of his main objectives is to eradicate its use. The minister believes that the digital currencies are being used for illegal affairs such as money laundering funding terrorism; the lack of regulations facilitates the trades.
It is understandable if some governments feel that digital currencies are untraceable and economic means for a new era of corruption and deceive, allowing a high tech wave of criminal funding activities.
Bitcoin and every other cryptoycurrancy were created outside all banking systems to be used worldwide. Now it could come against positions like the India´s government and could affect its price; after Jaitley´s declaration bitcoin price is considerably down at $7,940.
But, Why was the price so affected? Not long after the India´s finance minister intentions were known some other mainstream banks, households and credit card issuers decide to ban the purchase of bitcoin through their system.
UK Lloyds Bank, Bank of Scotland, Halifax, Bank of America, JPMorgan are just some of the big names that have blocked the purchase of cryptocurrencies through their systems. The price volatility is a high risk for unpaid debts, if the price keeps falling the debt with the banks will be higher than the amount the costumers have in their bitcoin wallets.
However, there is always someone that will come out and try to peace and ease the stress among all bitcoin investors, Oliver Isaac investor and influencer is not really convinced that bitcoin is already destroyed. He declared “With cryptocurrencies and blockchain technology going from strength to strength despite the volatile market conditions, I feel India’s threat to ban cryptocurrency will not have the devastating effects that some people are suggesting.”