Ironically, India was among the chief foes of cryptocurrencies in the past.
Only this year it nearly banned the digital assets in the huge country. Yet now India appears to have done an about face. New Delhi is planning its own national cryptocurrency to fill the void left by its crushed crypto-rivals.
In June of this year the Reserve Bank of India lowered a ban on every digital asset in India
The decision eliminated the possibility of either putting money in or taking money out of any Indian cryptocurrency as of June 5, 2018.
As a result, all financial organizations which work with RBI will be outlawed from settling, trading, or vending the digital assets.
Observers of the affair were scratching their heads at the severity of the RBI ban on digital assets. It now appears that in reality the Indians were only trying to eliminate the competition. This would leave them without rivals for control over a national cryptocurrency when they issue their own.
RBI Annual Report Discussed Need to Develop National Digital Currency
The annual RBI report deals specifically with cryptocurrencies in principal this year. In the report, RBI directly addresses the issue of digital assets. They refer to this as a “need to explore a digital currency for the country.” Their arguments for doing so are somewhat surprising. The RBI worries about the skyrocketing prices of issuing and handling metallic money and paper currency.
Now India’s Reserve Bank is showing great leadership on the issue all of a sudden. They are forming an inter-departmental group. It will research and offer guidance for the practicality of rolling out a national digital currency. Only this one will be sponsored by the central bank.
Basically it comes down to this. The RBI has used its financial regulatory powers to eliminate all cryptocurrency competition. With their national rivals crushed, all eyes are on the RBI. They have yet to announce their time frame for reporting findings and rolling out a national cryptocurrency. Yet the Indians are too clever to give up the momentum in the cryptocurrency space they have seized.
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