The Case Against the Ban

India’s looming plan to clamp down on cryptocurrencies has gotten everyone talking, especially former Coinbase CTO Balaji Srinivasan. He mentioned in an interview that this impending ban might not just be a bad idea; it could be a catastrophic one, akin to outlawing the Internet. After all, who needs a digital revolution when you can have a good old-fashioned economic catastrophe?

A Trillion-Dollar Mistake?

According to Srinivasan, the proposed ban could redirect trade revenues away from India and into neighboring Asian markets. Imagine letting your neighbor borrow your favorite video game, but then they decide to keep it permanently because you took too long to play it. That’s what’s at stake here. Here’s what he said:

“It would be a trillion-dollar mistake for India, without exaggeration.”

Financial Internet? More Like Financial Dry Spell!

Srinivasan continues to argue that banning cryptocurrencies would effectively block India from embracing the so-called “financial internet.” He estimates that if this ban goes through, Indian citizens could see their nation grow a little less affluent—by about 20%—over the next five years. That’s equivalent to saying: “Let’s bring back dial-up!” Do we really want to go back there?

The Cold Storage Conundrum

While the ban predominantly targets crypto traders and businesses, regular individuals might still find clever ways to dodge the heavy hand of the law—thanks to cold storage wallets. But before you celebrate your slick maneuvering, let’s keep it real: Cashing out could be a bit like trying to withdraw cash from a bank that’s closed for renovations. Thank you, bureaucracy!

Final Thoughts: A Lesson from History

As we’ve seen in history, attempts to ban advanced technology usually backfire spectacularly. Think Prohibition and the woes of alcohol bans. So, is India ready to embrace a trillion-dollar mistake just for trying to hold back the digital tide? Only time will tell, but let’s hope the future holds more foresight than hindsight.