Finally, cryptocurrencies are banned in India.
Today on 05 April, 2018, Reserve Bank of India (which is the central bank on India) has directed all regulated entities, including banks and e-wallets to stop dealing with all individuals and businesses that trade in virtual currencies. RBI has given three months time to these entities to sever all business relations with the entities evolved in crypto trades.
It means the Indian central bank has imposed a complete ban on cryptocurrency trade in India. Owing to this declaration banks and other financial entities will not allow transfer of funds from individual or company accounts to any cryptocurrency exchange or wallet. So, it would become virtually impossible for any individual to buy or sell cryptocurrencies.
At a press conference on the bi-monthly monetary policy statement RBI Deputy Governor B.P. Kanungo acknowledged that Bitcoins and other cryptocurrencies were getting international attention for quite some time for their speculative value.
"While the regulatory responses to these tokens are not uniform internationally, it is universally feared that they can adversely impact market integrity and capital controls. And if they grow beyond a critical size, they can endanger financial stability as well."
He also pointed out that the RBI has repeatedly cautioned users, holders and traders of virtual currencies regarding the various risks involved in this business. However, he cleared that they recognize that the blockchain technology or the distributed ledger technology which is the backbone of cryptocurrencies pose potential benefits for financial inclusion and enhancing the efficiency of the financial system.
It was not a big surprise when he says that RBI is also exploring the concept of a fiat digital currency for which an inter-departmental group has already been constituted to do a feasibility and desirability study on it. The report on the same is expected by June 2018.
This development comes just two months after the Indian Finance Minister Arun Jaitley announced that the government does not consider cryptocurrencies as legal tender and will take all measures to eliminate payments using them.
So, India has joined the rank of the nations which see cryptocurrencies as rival for fiat currencies and consider them the biggest enemies of traditional financial system. So, the prices of cryptocurrencies have already begun to plummet in India. However, I am still seeing that their price is stable so far in International market.
In my previous articles, I already had pointed out my apprehension and the possibility of ban on cryptos.
https://steemit.com/economy/@akdx/effects-and-impacts-of-a-government-owned-central-digital-cryptocurrency-cdc
https://steemit.com/cryptocurrency/@akdx/can-cryptocurrencies-replace-fiat-currencies-and-become-worldwide-acceptable-medium-of-money-exchange
nice post
indian government are corrupt people they dont want blockchain technology to be used in india if it does they cant hide there money .
Governments have their own concern. They are doing what they should do. But it has become a mattter of survival for cryptos. Cryptos need to show their strength and usefulness in this situation.
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