India Ban on Bitcoin | RBI Provides 3 Months to Everyone | My Views
Bitcoin has been in limelight since last year. More and more people started getting introduced to Bitcoin in 2017. We have seen market peeked above $800 bn from $25 bn in just one year of time.
We also have seen everyone talking about bitcoin and cryptocurrencies are going to fall or has crashed hard. But if you actually consider the price in April 2017 which was around $1100 and now in April 2018 it's above $6600 which is six times fold within a year, after the crash. In my opinion, it's not called crash it's called "correction".
There is still a confusion in people investing in crypto space. Everyone is not technical and everyone doesn't understand the fundamentals of blockchain technology. People who understand this technology are calling it a revolution and people who see bitcoin rising are calling it a great investment returns.
Governments and Authorities are trying to pressure people, who think bitcoin as an investment opportunity rather than a revolutionary technology. We have seen Korea previously when it was announced, South Korea will be baning exchanges and bitcoin trading but this action got reversed in a couple of weeks.
This time RBI (Reserve Bank of India) has shown concerns about growing Bitcoin investments in the country. Deputy Governor B.P. Kanungo has mentioned:
If they (cryptocurrencies) grow beyond a critical size they can endanger financial stability.
He also mentioned that RBI is not against Blockchain technology, in fact, they want it to get more explored and use it in tradition financial system in a centralized way.
Basically, they are talking about crypto-based fiat currency which India has already announced earlier in 2018 itself.
Banks have three months to close their dealings with the companies who work as cryptocurrency exchanges in India such as Zebpay & UnoCoin.
Since then Indian investors are selling their bitcoins crazily. in fact, there is a huge price difference in Indian exchanges and international exchanges. The current price of BTC is around $6800 whereas on Indian exchanges, due to heavy sell out BTC price is reflecting nearly $5400.
I personally believe that this action will be reversed within 3 months or more. If this doesn't happen Indian investors still have a chance to sell out their BTC to the international market. This would create a mess in the country and increase the percentage of black money.
Whereas Indian economy might lose the chance of gaining taxes on BTC investments. The major reason I could find out while my research is that there is huge fall in international bank transfers from past year. Clearly, people in India have found the way to save the transaction costs with international transfers. This means people are not only using Bitcoin as an investment but has also started using it to receive money from cross borders.
Would love to know your thoughts on RBI's crypto ban action in the comment section below.
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I agree, this decision clearly shows the desperation and fear among central banks, they are afraid that this Block-chain revolution will lead to ripples across the financial sector, it will create new winners and losers, and it will likely decentralize banking services and create micro markets, to any banker, this is a scary thought. Ultimately they are trying to save their jobs....
I do agree with you @hms818, central banks & governments want to explore blockchain technology more and use it for their own benefits by centralizing everything. but when it comes to decentralization they are too afraid to lose control.
But the problem, for now, is this Jenine is already out of the bottle and more and more people are getting to know the possibilities ahead with this technology. It cannot be stopped, in my opinion.
Central Banks are just delaying the inevitable at all cost. And are likely soaking up coins on this FUD, you know Jamie Dimon is.
Hmm nice talk
Exactly and it's what my uncles are deliberately on right now I think Central Bank are sitting on soup on this one...
You want to control the people, they you have to have control of the money. Government cant allow to slip what is the only reason why people listen to them in the first place.
@mandeep.vicky exactly, this is not going to end here, their actions will be reversed according to me. Bitcoin has already shown the middle finger to RBI statement. @heyimsnuffles
no govt can ban btc 100% sure
I don't think any ban is of importance, @bunnychum.
The crypto system is already in place and functioning. India cannot isolate itself economically from the world.
So all this ban is just a ploy of the government to create control and earning for itself. I think.
It is never going to be black and white.
The Indian government gives the typical Indian nod. Neither yes , nor no . Take it as you want and find a way around ! 😎😁☕☕
I think RBI is coming up with its own INR based crypto, sooner than you think. @nehab
This would provide them with various options, keeping banking system away from decentralized crypto, Providing a Stable centralized crypto (INR) will help them analyze how much people are earning from Indian exchanges as they would be keeping a close eye on crypto-INR trading pairs.
Exactly what I meant.
I believe so too.
Once RBI has it's system in place, The bans will be modified !
It is all a game. Governance is always a game of control and power play.
What do you say, @bunnychum ?
You are spot on Nehab!
banning bitcoin , by saying that it can used for corruption and transferring black money, is just an excuse.
Indian Government, is doing everything to strengthen the banks and banking system.
A year ago Indian Prime Minister, did demonetization in India , by giving the reason that demonetization will eliminate corruption, but , it was just a silly excuse.
The reason for demonetization, was to strengthen the banks and the banking system.
Now Indian government is using the same old excuse of corruption. But the actual reason for banning bitcoin, is the banks.
Cryptocurrency is threat to banking system. Whereas Indian government has been trying to protect and strengthen the banking system, at any cost.
So naturally Indian government would be against bitcoin and any other Cryptocurrency.
Well said!
I couldnt agree with you more. All those reasons are just excuses :/
I feel sorry for all those countries that are banning crypto and forcing part of their wealth to move abroad.
Thanks for that informative post. Very well written and easy to read.
Would you happend to know how big is cryptomarket in India?
You wrote:
"He also mentioned that RBI is not against Blockchain technology, in fact, they want it to get more explored and use it in tradition financial system in a centralized way."
I guess this guy doesnt know much about crypto and blockchain. You cannot be against bitcon and crypto and support blockchain. One doesnt exist without the other.
I never knew that price of BTC in India is so much cheaper. perhaps it's time to fly there for short holiday and shopping? :)
It seem to me that currently India, Poland and Kazachstan are top3 countries that are heavily against crypto.
@crypto.piotr India is trying to be the wise here, at first glance even I was thinking the same banning crypto is not a solution.
But according to their statement crypto is not being banned but banks are forced not to deal with crypto investors, on the other hand RBI is preparing its own INR based crypto. Try to look it like this if people sell their cryptos with this fud and India decides to go with crypto buy asking exchanges to use crypto based INR as pairing like usdt. Indian economy can get an instant boom by flooding money to INR with upcoming bull run.
Also, I was going through your posts, and I must say I really like your way of your writing. Following you too. Hopefully we can exchange thoughts sometime.
Thank you for your kind reply
I noticed that you've followed me. Im glad to know that you're enjoying my content (or at least I like to believe that you do :)
Thanks for your update about India. Very informative.
Hope to see more of your content related to crypto and blockchain.
"Also, I was going through your posts, and I must say I really like your way of your writing. Following you too. Hopefully we can exchange thoughts sometime."
and VICE VERSA!
The truth is that Im not english native speaker so I write drafts and then my love partner is fixing my writting. I wouldnt go far without her! :D Love of my life.
I would be happy to stay in touch. Could you drop me a message to my email: [email protected]?
It would be much easier to connect this way. Steemit notification system sucks!
Also would you mind checking my last post and sharing your opinion in regard to asked quetion: "Will crypto and blockchain divide humanity?". Im very curious what's your view on that issue.
Cheers, Piotr
I made my first contest ever. Would you mind checking it out and sharing your feedback? And perhaps also commenting as Im interested what is your view on discussed issue:
https://steemit.com/blockchain/@crypto.piotr/mini-contest-how-ai-supported-by-growing-blockchain-technology-can-change-the-world
I would really appreciate if you could share some of your experience with me :)
Cheers, Piotr
I think the action will be reversed in the near future. And there will be mich more investment coming out from Indians.
That's my opinion as well @hemendrapatar, they have provided with 3 months time which is quite enough to revoke or reverse the decision. India is a growing country they cannot afford to keep India aside from this new emerging economy.
This whole idea of introducing digital fiat currency is so absurd. I think this govt and RBI are living in Quixotic world. They are so oblivious to ground realities. Except for Cities and 1st tier towns how many people actually use apps for payments or mobiles or computers ? And in all that they want to force digital currency down our throats. Yet another instinctive decision making without considering any long term repercussions. Or is it a move, to facilitate big corporates in their plans to enter the crypto world ?!
JioCoin - really ?? They just cannot think of any better name ?!
@cryptonubee JioCoin is announced by reliance foundation. RBI's fiat-based crypto name is still unclear. however, this move can help Indian government to regulate cryptocurrencies by providing a trading pair of a stable yet crypto-based fiat on Indian exchanges.
But the value of fiat currency on the exchanges cannot be same. Moreover, being a centralized currency RBI can control rates, there by controlling how much profits we can earn. And the use case should not be limited only to facilitate trading. there has to be a strong white paper before even announcing it. Other wise the currency will not sustain. And that is where the adaptability of crypto in India comes in to picture. Crypto itself is in a nasicent stage here. RBI should not rush into investing more money prior to recovering huge losses recent scams have incurred. Even a developed country like Switzerland retracted their decision to introduce their fiat in digital.
I really don't understand whats wrong with RBI. Why are we the last ones to welcome innovations and technology. Why are we so skeptical to change. Fiat has been here since long and needs a change.
A change will churn the system and bring all the black money to the table. And set proper systems to not generate any more black money.
Anonymity of Cryptos sure sounds like a problem but banning them is definitely not the solution.
If you can't think of a solution then at least wait for the giants like USA and UK take a stand. And then just follow their footsteps like we have been doing all time.
@blog-beginner The way crypto is emerging in the world, most of the governments are getting panic as they know, they can lose control over the centralized system which can be replaced with blockchain being decentralized. So, this is understandable. India is not actually throwing the innovation out.
This had to happen, So more and more people get educated about what change is knocking on our doors. Yes, RBI has created a panic but considering 3 months is a long time. This should get reversed.
I hope it does. May be ambani should launch a crypto coin. He can then change the cards for whole India.
Every government will welcome Cryptos then.
Ambani has already announced JioCoin. in fact, even RBI announced crypto-based INR. You might see crypto-based INR sooner that you think, They might want all crypto trading in India should be done with their new centralized crypto to gain a little more control. (Just a thought) @blog-beginner
I dont think rbi announced any crypto based inr. They are planning for a Inr based digital currency. It could be no where related to crytocurrency.
I disagree. Crypto cureencies helps people to go off the government records as they are decentrelized. Black money cannot be controlled/accounted using crytocurrencies. Instead government can benefit by taxing the white money crypto user profits. Also, a legal recoganization will encourage crypto based projects in India. If this rules is enforced forever(i doubt that though), the goverment will end up making black money hoarders out of law abiting citizens.
Indian Government has disapproved BTC to INR and vice-versa transactions, however, they cannot stop the BTC to USD and USD to INR transactions and vice-versa. So, Indians can still earn from trading crypto. There is no one to stop!
Exactly @puregrace but considering this happing where BTC transactions get first into USD then into INR, this can hurt a countries economy and people will lead to holding black money without even wanting to.
Yes, same like earlier days when Indians used to hold money into Paypal, thousands of dollars. Now, Indians will hold BTC and USD again.
@puregrace Paypal was a company and a centralized system, RBI managed to force them not to hold Indian investments in the shape of USD for more than 24 hrs thus PayPal started forcefully sending funds to Indian banks.
But Bitcoin is another case. They cannot force BTC network not to hold Indian investors.
Then what will happen after 3 months? Are Zebpay, Unocoin going to find out another option or RBI will have to listen to their petition of reverse? What do you think will happen?
I think if this decision doesn't gets reverse. Zebpay and Unocoin have the option to continue operations out of india. But people will loose the option to invest in cryoto.
This would drive investors to choose grey market option which is not good economically for any growing country. @puregrace
Sounds painful! I earn only from Steemit and not sure about how to go further now. How to get INR from SBD in future. Hope there is some way out of this hell. Things have become so tough for me.
There are options like LocalBitcoins.com, grey market etc. But in this way Indian #investors / #traders / #steemians are being forced to increase black money.