In the past 12 months, global Government attitudes to cryptocurrency have begun to diverge significantly. This was highlighted recently by the action of India’s Central Bank (RBI) informing all Indian banks that they are prohibited from providing services to cryptocurrency businesses.
Following this, many of the major banks in India have forced customers to sign a declaration that they will not conduct any form of crypto transaction through their account, and have warned them that the account can be closed without notice if these transactions are found to have taken place.
The response from most participants in the cryptocurrency space has simply been to shrug their shoulders and carry on. We have become so used to being targeted by certain governments and certain banking institutions that events like this have lost the capacity to shock us.
Given the origins of the crypto industry, this reaction seems bizarre. How is it that an industry forged from the collapse of the banking system in 2008, who champion independence from control by centralised authority can just roll over?
Investor protection or just protectionism?
Time and again we simply accept criticism of our industry and move on. This is largely due to the amount of power which the existing central banks hold, whose best chance of avoiding their own extinction is to ban crypto. Having the crypto industry exist as an independent public entity is perceived as a danger to them, and they have shown they will go to any lengths to protect the monopoly that they and their banking partners have on the distribution of financial assets.
The issue is that we have become so fixated on the necessity of bitcoin being accepted as a financial product by the banking industry that we are willing to accept any amount of discrimination and blatant protectionism to get there.