India banned Bitcoin and creating a utopia

On Thursday a budget speech by finance minister Arun Jaitley generated a tsunami of ‘the Bitcoin party is over in India’ headlines, adding to downward pressures on the cryptocurrency.

Safe to say, the truth of the matter is a lot more gray. Yes, Jaitley talked tough on crypto currencies. But no, there was no outright ban — not yet, anyway. The Indian government’s plans for crypto regulation remain unformulated (or at least unstated). It did set up a committee to look into crypto back in April. Which reported in Jaitley in August. But no regulations have been confirmed, leaving rumors to swirl.

Here’s the relevant chunk of Jaitley’s budget speech (via The India Express):

Distributed ledger system or the block chain technology allows organization of any chain of records or transactions without the need of intermediaries. The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. The Government will explore use of block chain technology proactively for ushering in digital economy.

One clear takeaway from that is the minister is sounding much more positive about blockchain technology. And his tonal contrast between blockchain and cryptocurrencies is obviously intentional — and therefore interesting.

So yes Jaitley wants to sound like he’s pouring cold water on crypto. But whether that means you should hodl or not depends on your own personal threshold for risk.

The point about the Indian government not recognizing crypto as legal tender was already made by Jaitley, back in December. And a crackdown on crypto financing illegitimate activities is what any government will say it wants to do. What’s more interesting is the second clause in his sentence — where he tacks on “or as part of the payment system”, which is certainly suggestive of a ban. But nothing is explicitly stated.

And, as CNN reported earlier, Jaitley was explicitly asked if the government is moving to ban cryptocurrencies by Indian state-owned broadcaster Doordarshan, which interviewed him after the budget speech.

Here’s CNN’s translation of the exchange (emphasis mine):

Fleeing what they see as the impending taxation of their newfound fortunes, wealthy cryptocurrency investors are heading en masse to Puerto Rico, with their hearts set on building a crypto utopia.

PUERTOPIA
Puertopia

With the goal of creating a utopia – named “Sol” – run solely on cryptocurrencies and blockchain technology, crypto millionaires (and billionaires) are buying up property left and right in the Caribbean island of Puerto Rico.

Recently decimated by Hurricane Maria, many parts of Puerto Rico are still in need of reconstruction and renovation. Wealthy cryptocurrency proponents are ready to do just that, and have been buying up property left and right in historic Old San Juan.

“It’s only when everything’s been swept away that you can make a case for rebuilding from the ground up,” Puertopian Stephen Morris, 53, told The New York Times.

Matt Clemenson, co-founder of blockchain lottery website Lottery.com, also claims Puerto Rico is the perfect place to achieve their new vision of society:

We’re benevolent capitalists, building a benevolent economy. Puerto Rico has been this hidden gem, this enchanted island that’s been consistently overlooked and mistreated. Maybe 500 years later we can make it right.

The Puertopians—which also includes the likes of Block.One co-founder Brock Pierce, among others—are currently based in a 20,000-square-foot hotel called the Monastery. They currently have their eyes on buying the 9,000 acre Superfund cleanup site Roosevelt Roads Naval Station, which houses two deepwater ports and a nearby airport.

WHY PUERTO RICO?
Why Puerto Rico?

Puerto Rico is happily poised to offer safe haven to those looking to safeguard their cryptocurrency fortunes.

The country charges no federal personal income tax, no capital gains tax, and offers favorable business taxes. Even more enticing is the fact that Americans need not renounce their citizenship.

“The U.S. doesn’t want us. It’s trying to choke off this economy,” CNET and Videocoin founder Halsey Minor told The New York Times, in reference to the United States’ unfriendly stance on taxing cryptocurrency. “There needs to be a place where people are free to invent.”

The local government is happy to offer up Old San Juan as just that place, and the governor plans to speak at the “Puerto Crypto” blockchain summit in March.

CRYPTO COLONIALISM?