Tim Draper, a venture capitalist is one of the earliest investors in the internet. He is bullish on India. He believes India will benefit a lot from cryptocurrencies and blockchain as it will enable government to become more transparent and efficient.
"If I had a meeting with Modi, I would have let him know he is making a huge mistake. Bitcoin should be the national currency," Draper told the Economic Times in an interview on Friday.
India's aversion to virtual currencies was first displayed in December 2013 when the central bank issued a few words of caution.
On Thursday the Reserve Bank of India banned all financial firms from dealing with or providing services to any individuals or business entities dealing with or settling virtual currencies.
The country’s officials, including finance minister Arun Jaitley have expressed his strong dislike for virtual currencies.
India's tough stance on cryptocurrencies has taken a toll on bitcoin's popularity in the country.
The latest research informs, that the most searched digital coin in India is ethereum, commanding a share of 34.6 percent in the overall currency searches compared to about 30 percent share garnered by Bitcoin.
"That's the stupidest thing," said Draper on Indian government's move to declare cryptocurrencies as invalid tender.
Draper bought nearly 30,000 bitcoins in 2014, when the U.S. government auctioned off the virtual currency seized from Silk Road, the online market-place of illegal goods. According to the Forbes report, Draper has made 40 more crypto investments since that time.
Draper has been a huge supporter of blockchain startups. In July of the last year he invested in Tezos’s $232 million token sale and owns a minority stake in the firm that controls Tezos's code.
He recommends blockchain and crypto companies to shift base to countries where initial coin offerings are allowed. Draper told the Economic Times:
"If the local authorities are banning crypto, then companies in the space should move elsewhere. The government needs to realize that it is stifling innovation and should instead be creating an environment where these ideas can be tested and promoted."