India is an important country in the developing digital economy, and its actions will have large effects out of proportion to its size.
https://news.bitcoin.com/indian-government-crypto-regulation/
Aside from being unusually diverse among major countries, it has carried forward a lot of colonial illness that has to be resolved.
As with all major fiat powers today, there is no possible scenario that ends long term with a strong federal power in India. That colonial fantasy should be discarded. What should be sought is a federation of groups consisting entirely of citizens with an indigenous identity, or mixed indigenous identity.
The reason why India is in a strong position to possibly solve this issue properly is that it is
a) mildly democratic i.e., certainly not Norway, but at least not an open air prison, and
b) it's diversity consists of indigenous groups, some of which have power, some not, but its 'colonial element' is an abstract remnant and not an occupying race. In other words, despite very vocal and aggressive nationalism, those individuals invested in consuming indigenous peoples can be walked back from that tendency with little real cost, aside from their pride.
c) It's education, and respect for education, of all kinds, is extreme. India is full of uneducated people, like any country, but it has distributed highly educated people across its territory. Unusually, it has a very wide mix of people with both 'colonial education' i.e., academics, and 'indigenous education' i.e., 'elders' of highly developed traditions. While most aspiring colonial empires have quickly exterminated the leadership of indigenous groups, India has done it more slowly.
The basis of the colonial mindset is the sentiment from hundreds of years ago that a conquering power had the 'right' to consume its victims, and this sentiment is the subconscious foundation of all modern federalism. This should be differentiated from a group's right to defend its identity, which is frowned upon in most societies and is leading to reactionary activity, for example by 'white supremacists' as the media calls them, people who simply are not interested in being consumed by their own melting pot.
The stumbling block for India is simply lack of public awareness of the range of 'colonial criminality' in different regions. In one area a local government can have complete liberty to slaughter non nationalist indigenous people at will, in another area the government cannot fill a pot hole without approval from a local partisan leader.
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