Balaji Srinivasan, former CTO of Coinbase, believes that a crypto ban in India will reverse the country’s economy and cost trillions of dollars.
The manager, who is also a former partner of Andreessen Horowitz, stressed that the plan to ban cryptocurrency, which would prevent India from investing in crypto trading, mining and digital assets, “should not be implemented”.
Balaji Srinivasan also said in a recent interview:
Without exaggeration [the crypto ban] would be a trillion dollar mistake for India. This will be a reversal of economic liberalization in many ways.
According to the former Coinbase tech chief, such a ban is like a “ban on financial internet” in a country of 1.36 billion people. Srinivasan predicted that in such a case, India’s crypto ban would force the founders to leave the country, which would result in capital flight.
According to reports, officials said the proposal to ban cryptocurrency in India could become a reality. Indian cryptocurrency enthusiasts can be expected to convert their assets to fiat in the coming months.
Additionally, local reports have indicated that India-based crypto exchanges are now concerned about future regulatory action that could force investors and talent to leave the country.
Srinivasan, now an angel investor, had similar views. He stated that the ban would “encourage another wave of immigration”. He believes that in order to attract people heading to regions that prefer cryptocurrency, India must eventually “lift the ban” on cryptocurrencies in 2025 or 2030.
The entrepreneur also said that if the cryptocurrency ban proposal becomes final, instead of seeing the planned economic growth for the next five years, India could get 20% more poor.