(Image source from: MoonCatcherMeme)

In a strongly-worded message, Tim Draper, an American billionaire, and venture capitalist, condemned the Indian government over its cryptocurrency regulations.

On July 16, Draper, best known for his investments in companies such as Baidu, Hotmail, Skype, and Tesla, lashed out on India’s Narendra Modi government calling it “pathetic and corrupt” for its disapproval of bitcoin.

People behaving badly! India's government banned Bitcoin, a currency providing great hope for prosperity in a country that desperately needs it. Shame on India leadership. Pathetic and corrupt. #India #bitcoin

— Tim Draper (@TimDraper) July 17, 2019

Draper’s reaction came after blockchain lawyer Varun Sethi circulated the supposed draft for banning cryptocurrencies that proposes a 10-year prison term for those who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.”

The document makes one exception for this rule, which is the “digital rupee,” a sovereign token issued and backed by India’s central bank, the Reserve Bank of India (RBI), for local transactions.

Currently, there is no official ban on cryptocurrencies in India, but the RBI has choked the burgeoning ecosystem by barring all dealings. Already, a bunch of exchanges like Koinex and Coinome has been forced to shut shop.

However, Draper, 61, soon received immediate criticism from Twitter users for his comments.

In India, Draper is best known for his Silicon Valley entrepreneurship college, the Draper University, which has incubated several Indian entrepreneurs in recent years. Two years ago, Draper Ventures partnered with Blume Ventures to fund Indian startups.

It is clear from your tweet you are severely ignorant of #India its economy, it's #Government and most importantly #bitcoin you so passionately push to everyone. It doesn't take a genius to know your massive investment in this Ponzi scheme called crypto. Go convince @POTUS first

— Arun Pudur (@arunpudur) July 17, 2019

Sorry Tim. GoI is right on not allowing Bitcoin. You can't call them corrupt for that policy decision. India's 100+ cr population can't take to crypto currency that easily. The wild swings of crypto, totally without any rationale, can wipe out the income of ordinary people.

— NEET - CET - AIIMS - IIT JEE (@Equateall) July 17, 2019

Others stressed that the outsize reaction is unwarranted since this is just a draft bill and may never even see the light of day.

Important Note:

1. Not all bills become law
2. This Crypto bill has not been introduced in current Parliament session (next in December?)
3. This looks like a rough draft, plenty of changes to come
4. Public opinion might be invited first
5. Dont Panic#IndiaWantsCrypto https://t.co/EUfYqHFcLV

— Nischal (WazirX) (@NischalShetty) July 15, 2019

However, Draper, who recently advocated bitcoin to the government of Argentina, is certainly not alone in his dislike for India’s strict regulation.

Barry Silbert, venture capitalist and founder-CEO of Digital Currency Group (DGC), took to Twitter on June 7 to say such moves will “have the opposite of the desired effect on bitcoin awareness and interest in the country.”

Computer scientist and crypto advocate John McAfee has said banning bitcoin is futile. “Banning the invisible, used by the anonymous. Wake up world! Crypto is the mythical Pandora’s box come to life,” he wrote on July 16.

India announces it plans to ban all crypto. Banning mosquitos after a rain in the summer would stand a better chance of being enforceable.

— John McAfee (@officialmcafee) July 16, 2019

Draper was an early investor in Bitcoin. Reportedly, his investments in the cryptocurrency space are estimated to be between $350 million and $500 million.

By Sowmya Sangam