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Blanket ban on cryptocurrency isn't a good idea

India is open to the use of blockchain technology but not private cryptocurrencies. If the recommendations of the inter-ministerial panel headed by Finance Secretary Subhash Chandra Garg — which submitted its report on Monday — are accepted and the proposed Bill is passed, India will not only shut its door to cryptocurrencies, such as bitcoin, but will also make dealing in such instruments an offence with imprisonment of up to 10 years. 

The idea of putting a blanket ban on cryptocurrencies is premature for multiple reasons. For one, these are still early days for cryptocurrencies and tradeoffs are not fully understood.