As the influence and usage of the cryptocurrencies surge throughout the world, India however, has hinted on taking a completely different route. The Reserve Bank of India (RBI) has signaled it’s displeasure over the usage of Bitcoin in Indian market. This might well be the beginning of the end of bitcoin in India.
A very conclusive statement was made earlier this week by a director from the Reserve Bank of India (RBI) which basically is a policy stance of RBI on bitcoins.
Ganesh Kumar, the executive director of RBI stated on Monday here in Mumbai,
“Our current position on bitcoins is that we will not be using it for any payments and settlements…though the technology underlying cryptocurrencies will not end.”
If there had been any doubt regarding the government’s stance on the cryptocurrencies future in India, it has been removed. It is now very clear that government does not see any future for bitcoin in Indian economy. This however, does not mean that the Indian government is completely done with the idea of cryptocurrencies. It is widely believed within the inner circles of the Indian government that blockchain technology can replace the bitcoin in coming future as it is already in use the by government for various transactions. It is especially used for overseas transactions at the highest level.
It is believed in the business circles that the cryptocurrencies have a bad reputation among the economic regulators which has led to this current stance by government. For instance, a bitcoin is currently worth almost three times its original value in India. This indicates the lack of control over its market presence. Then there is also an issue of this medium being used by criminal elements such as money launderers and terrorists alike. And due to the lack of regulations and monitoring on it, it has been decided at the very top of the government that the best way to control this medium is by making it obsolete.
According to media reports, Mr. Kumar also added RBI’s stance saying:
“Any user, holder, investor, trader, etc. dealing with cryptocurrencies will be doing so at their own risk, as it had previously informed the parliamentary standing committee on finance.”
Also Read: Bitcoin Market On a Steady Rise In Pakistan
As far as the Indian market goes, although the bitcoins are multiplying on their face value in the market, there is actually very limited usage of it in the form of actual currency. There are very few restaurants, cinemas or other outlets that accept it as the alternative currency. So it mainly is an investment option for the investors who like to invest in cryptocurrencies due to its easy management from an investor’s point of view.
The current development has put the cryptocurrencies investors in India at unease. They are planning to start a lobbying campaign to prevent the government from issuing an office notification which will categorically ban the usage of bitcoin altogether.