India’s Coinome has announced that it will cease operations on May 15th and has encouraged all its customers to withdraw their crypto. This is the 3rd such exchange to close down in India since the RBI imposed its ban last July. Zebpay was shut down last October due to the regulations, Coindelta was shuttered in April and now Coinome is the next Victim in line. Unocoin may be next as it has said that it only has until July before liquidity dries up. Unocoin has reduced its staff down to 14 people and may be forced out of India unless regulations change soon.
China trying to ban access to foreign exchanges
China is really tightening the bolts about completely eradicating cryptocurrency within its country and preventing people from moving money offshore to invest in cryptocurrency. Now it is trying to ban access to over 100 foreign crypto exchanges. China really does not like de-centralized cryptocurrency as the central government cannot control it. However, I think there is something else here. I think China might launch its own national cryptocurrency fully controlled by the government and they want to clear out any possible competition to their national cryptocurrency.
However, I think all these steps will ultimately unsuccessful and will just put China behind on both blockchain technology and cryptocurrency. It will force trading underground but will not stamp it out. Overall, I believe it is a bad strategy.
India July 5th deadline for Banks to un-tether themselves from Crypto approaches
Indian Banks have until July 5th(day after tomorrow) to completely rid themselves of connections and make it so there is pretty much zero liquidity in the country for cryptocurrencies. Liquidity in India was already pretty close to zero anyways so I do not think this will effect it much. However, if you wake up on July 5th and find that the price of Bitcoin has dropped a bit, you should not be surprised as all banks in India would have had to do away with any cryptocurrency connections they had the night before.
I personally think India is taking the complete wrong approach to crypto as it will hinder their people’s interest in blockchain technology and slow their own technological development. Trying to separate Bitcoin or cryptocurrencies from Blockchain is going to end in failure because you are basically killing off one of its primary uses and the one that most people are interested in. In addition, a lot of outside international banks and investors are taking notice of crypto now and adoption is within sight so to try and competely ban it like India or China is a big mistake.
Donald Trump Bans Venezuela Cryptocoin, Mastercard Crypto announcement and 16 million now own Crypto.
President Donald Trump announced today that he is sanctioning Venezuela’s Cryptocurrency, Petrocoin, from the United States. Why? I’m not quite sure. I doubt this will actually do anything because no one I know was actually interested in this coin and I doubt Venezuela was really looking to the United States for major investment into this coin. The president of Venezuela basically told businesses to accept this coin as a form of payment in his country so I think most of the movement and use will be in Venezuela and not somewhere else. I think Trump is just trying to use this as pressure to win diplomatic favors from Venezuela, a tactic which is questionable at best.
Mastercard has announced that they would use Cryptos but with a huge catch — the Cryptos have to be issued from a central bank which basically means the only real possibility in the near future would be Ripple. Being issued from a central bank is against the basic spirit of most cryptos as virtual currencies were meant to be decentralized. Of course being peer to peer and decentralized is a huge threat to the banking and financial sector which currently has a monopoly on our finances right now and they are not willing to give that up so easily. So this basically means that neither Visa or Mastercard will think about adopting a real decentralized crypto anytime soon. However, the market will just keep getting bigger and if a smaller player like American Express or Discover picks it up, they may start to steal market share away from Visa and Mastercard and force them into the fray too. I think eventually this will happen. Once one company or institution breaks the dam that the financial sector has set up, the water will soon come rushing through.
It has been reported that 16 million Americans now own a Cryptocurrency. That is roughly 5% of the American population and if you discount those under the age of 12(basically kids that don’t have money), you can say about 6-6.5% of the American population now are in the Crypto market. This is big news because at a critical percentage of the population you are going to see large amounts of political pressure to make regulations that favor cryptocurrencies. Right now, there may not be enough people in the game to exert this kind of pressure but once this number gets to 15-20%, pro-crypto groups may really push back against the banking and finance sector on issues of policy and it is at that point that Cryptos will hit the mainstream the the traditional financial institutions will have to either adapt or die. I think this may happen in the next few years.