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India’s multi-phased election kicked off earlier this month and the manifestos of the major political parties have not made any crypto-specific promises.
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However, promises related to the digitization of the nation have been made, even if crypto is at best a negligible issue for voters.
India’s general election in 2024 is not expected to immediately affect crypto policy, and its current – restrictive – rules are expected to continue on through the upcoming Parliamentary term.
The world’s most populated country and the fastest growing major economy kicked off its multi-phased elections this month, with results expected on June 4, 2024. Several industry analysts told CoinDesk they don’t expect any changes to crypto policy after the next term’s lawmakers are elected, resulting in the near-term continuation of rules that have stifled the nation’s digital asset ecosystem.
Prime Minister Narendra Modi, 73, is aiming for a third five-year term as the face of the ruling Bharatiya Janta Party (BJP), and is overwhelmingly expected to win the elections, pre-election surveys have shown.
Such is his expected dominance that the Indian National Congress (INC), the major opposition party and several regional parties, around 40 in total, have come together to form a coalition called I.N.D.I.A (Indian National Developmental Inclusive Alliance) to fight him.
The election is for 543 seats in the lower house of Parliament, referred to as the Lok Sabha. The party or alliance with the most seats would select the country’s prime minister and form a government.
Crypto as an election issue
Crypto’s significance as an election issue remains non-existent or at best negligible. Web3 remains esoteric for an overwhelming majority of the voting population. Even the fact that India has implemented a steep tax deducted at source on crypto transactions (1% on every transaction) is unlikely to play a role in this year’s election in any major way.
Issues such as lack of jobs, a Hindu-nationalist agenda against a constitutionally enshrined secularism, alleged marginalization of minorities, the role of electoral bonds, institutional independence and agrarian policies have dominated the headlines, making sure that crypto is not even a political talking point.
“Indian elections are still focussed mainly around socio-political issues,” said Kiran Vivekananda, Chief Public Policy officer at one of India’s largest cryptocurrency exchanges, CoinDCX. “Technology has started becoming an agenda item but is more from the setting up [of a] manufacturing base in India and the job-creation lens.”
Yet, Vivekananda expressed hope that the incoming government would work more closely with the industry to understand its challenges, provide solutions and protect the interests of citizens. However, other entrepreneurs believe more needs to be done by the Indian crypto industry.
“Developments in the U.S. show that crypto can indeed become a political talking point, influencing policy and voter choices,” said Ashish Khandelwal, founder of Anq, a digital banking platform and a person who has been engaging with legislators. “To mirror the U.S., the Indian crypto industry needs to highlight how the tech can offer more than just investment opportunities, creating awareness around tangible benefits.”
No crypto-related promises
Neither major party, Modi’s BJP nor the INC, have mentioned the words cryptocurrency, blockchain or Web3 in their manifestos. However, this isn’t necessarily reflective of their plans toward the ecosystem. Indian government and political stakeholders, like other nations, have often used euphemisms to refer to the crypto-related space.
The ruling BJP’s manifesto said the party would educate senior citizens to avoid digital scams, take stringent action against those who threaten the nation’s digital sovereignty and would develop “Digital Public Infrastructure to remove information asymmetry in agriculture.”
The Congress…
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