India's Central Banks

India's Central Banks

It was confirmed today that the RBI (Reserve Bank of India) has decided that any entity regulated by India's central bank shall not do any sort of business with individuals or businesses dealing with cryptocurrencies (referred to as VCs, or virtual currencies).

“13. Ring-fencing regulated entities from virtual currencies Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. However, Virtual Currencies (VCs), also variously referred to as crypto currencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others. Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately.”
— Reserve Bank of India

The statement continues by saying, "Regulated entities which already provide such services shall exit the relationship within a specified time.", which according to statements gathered from, the 'specified time' is three months. This, however, may not have come as a surprise to those dealing in the crypto-space in India, and it doesn't mean Bitcoin (or cryptocurrencies) are banned. According to a Tweet from PocketBits, an Indian Bitcoin exchange:

Following suit of other countries regarding decentralized cryptocurrencies, India is planning to study more and explore options of potentially introducing its own 'central bank digital currency', citing the emergence of private digital tokens and "...the rising costs of managing fiat paper/metallic money..." as their reasoning. They estimate that their report on the matter shall be submitted by the end of June 2018. For those (Indian citizens) wishing to take a more active role than just awaiting the RBI's report, can sign a petition here.


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