Ever since the introduction of the world to the concept of cryptocurrency, it has been a matter of fascination and interest. More and more nations are trying to incorporate crypto into their system. However, there are certain nations that want a ban on cryptocurrency.
According to crypto news for today, India could be one of those countries. Well, not precisely the whole nation but rather an important entity in India wants to have a ban on cryptocurrency.
The RBI or the Reserve Bank of India has been making different proposals for instituting a blanket ban on cryptocurrency for sure. Apparently, the root cause of the major concern that the RBI has is the potential of different digital assets to actually disrupt the rise of the country as a power on the global front. This Thursday, the central bank of India, RBI created and published a particular bulletin. This critical bulletin actually contained information regarding the crypto industry for sure.
While there were some praises about the innovative and distinctly distributed ledger technology used in the crypto space, there were some other negative notations as well. the RBI apparently dismissed all the arguments that were calling for having a certain kind of regulation on cryptocurrency and other digital assets. In fact, the Reserve Bank of India called for an outright ban on cryptocurrency.
India will not be one of the first nations to request a ban on cryptocurrency for sure as there are so many other nations that follow the same path. For example, China was one of the very first countries to impose a ban on cryptocurrency. Now, this request made by the Reserve Bank of India has definitely shocked the entire world for sure. There were different concerns that RBI had regarding the usage of cryptocurrency in the country and hence the organization asked for the ban. These concerns were actually for the financial standing of India for sure.
RBI Has Different Concerns Related to Country’s Financial Sovereignty
RBI’s core concerns were related to cryptocurrencies threatening the country’s financial sovereignty. The RBI wrote: “Historically, private currencies have resulted in instability and therefore, have evolved into fiat currencies over centuries. The retrograde step back to private currencies cannot be taken simply because technology allows it without considering the dislocation it causes to society’s legal, social and economic fabric.”
According to the RBI, an increase in the adoption of cryptocurrencies would lead to a danger of crypto replacing the Indian rupee, thereby undermining authorities’ control of monetary policy. In addition, the RBI does not appear to be convinced by arguments citing the relative laissez-faire regulation of cryptocurrencies in developed countries, such as the United States, as a basis that India should do the same: “Almost all cryptocurrencies are priced in terms of Dollars. If cryptocurrencies replace emerging market currencies, that will give developed markets better strategic control over the EMs.”
There appears to be little concern regarding how such a proposed ban would affect everyday Indian crypto enthusiasts, however. While the RBI suggested that individual investors would be provided with “reasonable exits” as to not lose money, it also said:
Also Read: The Reserve Bank of India (RBI): No Intention to Release Cryptocurrency
“Persons who have invested in these instruments are fully aware of the risks involved. Investors who have acquired these instruments have done so with their eyes wide open, at their own risk, and do not warrant any regulatory dispensation.” According to crypto news for today, India is currently facing a very chaotic system when it comes to cryptocurrencies. While some entities, such as the RBI, are in favor of banning crypto, others such as the Indian government want to regulate the sector instead of enacting a blanket ban.
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