India and China hugely impact the global market as the world’s largest economies. And with the recent rise in popularity of cryptocurrencies, these two countries have been forced to re-evaluate their stance on digital currencies. If you are interested in bitcoin trading check the things to know about bitcoin that you may not know
Cryptocurrencies, like Bitcoin, have been gaining traction all over the world. But, in India and China, the government’s reaction has been quite different. While China has banned all cryptocurrency exchanges, India is still trying to figure out its stance on the matter.
This difference in opinion has led to much tension between the two countries, especially regarding Bitcoin. So, let’s look at how this digital currency affects India and China’s relationship.
There have been many questions on whether or not India and China will become friends or enemies in the future. Still, the world is currently experiencing a period of uncertainty regarding the trade status between both countries.
India and China have long been rivalling neighbours, but the advent of Bitcoin could profoundly affect the region.
Still, in other ways, Bitcoin is a world-changing technology that we may see be used in the future to resolve some of the current problems.
Bitcoin in India
While the Reserve Bank of India (RBI) has issued a few warnings about the risks associated with digital currencies, it has not outright banned them. It means that, for now, Bitcoin is still legal in India.
However, that could all change shortly. The RBI is currently working on a report that will recommend whether or not to ban cryptocurrencies in India. And, if the report recommends a ban, the government will likely follow through with it.
This uncertain legal status has made it difficult for Bitcoin exchanges to operate in India. As a result, many of the biggest exchanges, like Zebpay and Coinsecure, have already shut down. And, if a ban does happen, even more exchanges will likely be forced to close.
The uncertain legal status of Bitcoin has also led to many scams. A man lost over $1 million after investing in a fake Bitcoin exchange in one recent case. As a result, the decision was made to crack down on money laundering and fraud.
Since the ban, many Chinese Bitcoin investors have turned to overseas exchanges. But, the government is now cracking down on these exchanges as well.
This crackdown has made it incredibly difficult to buy or sell Bitcoin in China. And as a result, the Chinese Bitcoin market has dried up.
The Impact on India-China Relations
The different approaches to Bitcoin in India and China significantly impact the relationship between these two countries.
For one, it’s led to a lot of tension. For example, in December 2017, the Indian government raided a Bitcoin exchange in China.
And as the two countries continue to take opposite approaches to Bitcoin, this tension is likely to continue.
The different approaches to Bitcoin also have an economic impact on the relationship between India and China. India is one of the world’s largest markets for Bitcoin, while China is home to many of the most significant Bitcoin mining operations.
As Bitcoin becomes more popular, the economic relationship between these two countries is likely to become even more imbalanced.
The future expectation of Bitcoin’s effects on international relations between India and China:
The different approaches to Bitcoin in India and China are likely to impact the future relationship between these two countries. For example, if India bans cryptocurrencies, it could lead to more tension between the two countries. And, if China continues to crack down on Bitcoin, it could cause economic problems for India.
Furthermore, the different approaches to Bitcoin could also impact other aspects of the relationship between India and China. For example, if India bans cryptocurrencies, it could make it harder for Chinese companies to do business in India. Or, if China cracks down on Bitcoin, it could lead to more Indian investors investing in cryptocurrency exchanges based in other countries.
Only time will tell how the different approaches to Bitcoin in India and China will affect the relationship between these two countries. However, Bitcoin is already having a significant impact on their relationship. And as Bitcoin becomes more popular, this impact is likely to grow.
The Bottom Line
And as Bitcoin becomes more popular, this tension is likely to continue. So, it’s essential to keep an eye on this situation, as it could impact the global cryptocurrency market.