The adoption of cryptocurrency is one of the hot topics for most of the countries. Many strong economies have accepted the new digital money with clear-cut regulations while there are still many contemplating and worrying about the upcoming impact on their conventional currency system.
The Indian government is also one among the few where the officials are still debating and apprehensive towards the influence and overpowering nature of the new digital money.
During last year, 2nd quarter RBI has announced its negative stance and prohibited all the banks and institutions to deal in cryptocurrencies and denoted them as “lack of intrinsic value which raises crucial concerns like consumer protection, market integrity, and money laundering” and bard the banks to stop providing services to any individual or business entities dealing with it. Following these restrictions approx.…11 representatives from several crypto-related companies filed a petition to obtain an interim injunction against the RBI circular with the Indian Supreme Court. However, the case is still pending and hearing dates are kept on extending from the past year with unworkable deliberations which are still going on and there is no well-defined conclusion come to light.
On Feb. 4, the local media outlet Quartz India summarized some concerns of Indian govt working group formed in 2017, led by an Economic Affairs Secretary of India Subhash Chandra Garg.
Reportedly, an anonymous information source claiming to meet the govt panel and discovered the points on perturbation of the committee. In particular, the considerations are implying on the large impact of the country’s financial ecosystem.
“If bitcoin and other digital currencies are going to be allowed to be used for payments then probably it will end up destabilizing the fiat currency”.
Quartz also indicated the litigious report released by the Bank of International Settlements (BIS) last year in March and in the continuation of the series this year in Jan. which has driven the committee into such unfathomable circumstances.
Purportedly, the Reserve Bank of India (RBI) is also one of the members of 59 other central banks of the BIS. The institution serves as an international bank for central banks which looks after international monetary and financial cooperation for collaborations. The BIS notified including other factors the threat to financial stability possibly be provoked if central bank favors and issues their grant to digital currencies (CBDCs).
However, there are active business representatives and owners of virtual currency related businesses of the country consider these issues are downright ineffectual.
Quartz India mentioned the viewpoint of an Indian cryptocurrency exchange, Koinex, founder, Rahul Raj on the controlling power of the new digital money.
As the crypto payment adoption is quite limited “possibly a bit premature scenario to worry about the impact of cryptocurrency on monetary stability”. The country is sailing on the uncharted waters and according to him, blockchain technology would, by and large, going to take time for mass adoption like Mastercard or Visa have its promptness on the public.
Recently, South Korean task force also announced that it will continue to put a ban on domestic crypto initial coin offerings (ICO) because of high-risk investment instrument in many areas.
Whether it is a brain drain situation for active crypto enthusiasts and businesses of the anxious countries or an opportunity to establish the revolutionized ventures based on breath-taking technology in the developed countries the coming epoch will reveal. Till then the crypto favoring people and communities have to wait for the reasonable and conceivable regulations.
We keep on guiding and sharing the information on regulatory affairs of the crypto industry and curiously waiting for our readers to comment on what they think on the fears of mass adoption of crypto as a payment.