India: RBI On Cryptocurrencies From It's Annual Report 2017-2018
RBI has released it's annual report and this time around they seem to be weighing on cryptos quite seriously. You can read the full document here. Here's the gist of the document from a discussion on social media.
Some of the points from their report currently being debated:
- RBI finally recognises the emergence of private digital tokens as well as the fact that it has prompted central banks across the world to explore 'Fiat Digital Currencies'.
- RBI admits to setting up a committee to look into the possibility of introducing it's own digital currency. This shouldn't come as a surprise we've been hearing about this for a while now.
- It's annual report echoes it's recent mandate to ban banking services to exchanges citing 'consumer protection.'
- It says that, 'Cryptocurrency may not pose systemic risks, its popularity leading to price bubbles raises serious concerns for consumer and investor protection, and market integrity.'
- RBI also adds that there is no framework for recourse to customer disputes resolution as payments by crypto take place on a peer-to-peer basis without an authorised central agency which regulates such payments.
But it seems to be living under a rock if it thinks this because according to Crypto Lawyer Danish who runs CryptoKanoon, India's existing framework is applicable for disputes resulting from even P2P transactions. Because we have Contract Act, Consumer Protection Act, Information and Technology Act as well as the Indian Penal Code to protect consumers.
These are some of the main points. However, it's getting clearer now that RBI is clearly shooting itself in the foot trying to ban services to exchanges and preventing legit businesses from operating in this space.
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
- Let's Watch This Fun Video From International Steem Meetup #1—Malaysia
- Why You Should Vote For @firepower As Witness—Witness Campaign Post From India!
- Steem.Chat Contest #41
I am not sure how to take this , it sounds like RBI is just quietly looking into Crypto's and not wanting to acknowledge that they are. This will probably continue.......Crypto bad........and then they will jump on the band-wagon when everyone is looking the other direction!
resteemed firepower :)
I am always stunned by the sheer number of government agencies which do not even fully read about the topic they are talking about. It not only raises the question about their decisions but the very people running the show.
What's even more surprising is that they tend ot get away with it, much too easily. I guess once we have their crap on something as immutable on blockchain, then they could be called to account much easily. Could this be one of the reasons for them to be fearful of the DLT?