Donald Trump the current Presidential candidate from the Republican Party is known for his pro-Bitcoin views worldwide. In one of his speeches, he reiterated that he wants to establish the US as the “Crypto Capital” and “Bitcoin Superpower”. There are speculations on what exactly did he mean by harping on the term Bitcoin’s superpower status. He also said that he will sack the SEC chairman after coming to power. In one of his interviews he said that he will “solve” the US debt problem with the help of Bitcoins. Since the US has a huge stake in the world’s financial economy, the implications of these policies can have a far-reaching impact on the Indian economy.
Bitcoin’s Superpower Status
In the US, Donald Trump and the Republican Party are pledging to create a strategic reserve of Bitcoin for the US government. Additionally, they raised a significant amount of Bitcoin campaign funding which can boost his claims. In the US, Bitcoin has witnessed rapid growth and has become the top new asset in the world. It may also boost the requirement of exchange platforms for purchasing, selling and trading cryptos.
Therefore, if Trump comes to power, it can be good news for Bitcoin. However, currently, the US has a high crypto tax rate in the world and it defeats the purpose of granting it a superpower status. It is also true that doing away with high taxes can further exacerbate the debt situation of the country.
Implications in the Indian Economy
India has an ambiguous position on cryptocurrencies in general. However, it has become one of the major advocates of establishing a legal framework for all cryptocurrencies. The investors in India will have to reassess their financial potential, if the US officially promotes Bitcoin. Currently, the US government’s SEC has approved only Bitcoin ETFs but direct ownership is still unregulated. However, this too can change soon. If Trump becomes the new President, then he may try to frame policies that favor Bitcoin and other cryptocurrencies. It will automatically lead to more investments and can lead to better collaborations between India and the US.
Capital gains and high taxation are some of the dissuasive incentives for crypto retail investors in India. This can change for the better if Donald Trump succeeds in turning the US as the Bitcoin capital of the world. Once that happens, then prices of Bitcoin will soar. There will be appropriate regulations for widespread adoption across the world. It may change the mindset of many Indian crypto investors for good.
The Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) may adopt a favorable outlook towards cryptocurrencies. The changes in the status of Bitcoin’s superpower status may change considerably. It may lead to building a blueprint of a framework for following discussions with stakeholders. Donald Trump also wants to transform the existing crypto legislation and this may prompt the Indian government to do the same.
Also Read- Application of Blockchain Technology in Data Storage
Conclusion
Donald Trump’s policies to turn the US into a Bitcoin superpower can have a profound impact on the Indian economy. It may force the Indian policymakers especially the RBI and SEBI to adopt more lenient measures to deal with cryptocurrencies. Since the US has a huge stake in the global economy, other countries may also follow suit and modify their crypto regulations. The impact on the sector is going to be positive since it will lead to more investor confidence and boost crypto adoption.
No Comment