Is India Thinking About Banning Bitcoin and Cryptocurrencies?

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The Central Bank of India, Reserve Bank of India (RBI), is analysing the possibility of banning Bitcoin and Cryptocurrencies. But the bank remarked the intentions to work with Blockchain technology. The RBI did not explain whether it is planning to issue a recommendation to the government or if they will present a draft.

Reserve Bank of India Restrictions on Cryptocurrencies

It is not the first time that the RBI commented about Bitcoin. “Fiat will be when the Resreve Bank, for example, starts issuing digital currency which you can carry in cyberspace, you don’t have physical currency in your pocket,” Sudarshan Sen, RBI executive director said at a conference in Mumbai and reported by Bloomberg.

The executive director, S Ganesh Kumar, suggested that cryptocurrencies like Bitcoin or Ethereum will not be allowed in India. “Our current position on Bitcoin is that we will not be using it for any payments and settlements… though the technology underlying cryptocurrencies will not end,” he said at a conference held in Mumbai, India on November the 6^th.

These comments give a clear idea about where the government stands towards Bitcoin and cryptocurrencies. At the moment any draft has been circulating regarding the measures that will be taken by the government. Other countries will also regulate Bitcoin, like Vietnam, Russia or Kazakhstan, as reads in Bitcoin News.

“As regards non-fiat cryptocurrencies,I think, we are not comfortable with them,” added Ganesh Kumar.

Blockchain Technology is not Only Bitcoin

The State Bank of India, has announced that it is analysing the possibility of implementing Blockchain technology. The bank will implement this technology in the management of Know your Customer (KYC) protocols. That will allow the bank to perform faster and more secure transactions.

In addition to it, other banks in India had already implemented Blockchain technology for daily applications. ICICI Bank, Kotak Mahindra Bank and Axis Bank are in the list of those Blockchain supporters.

This is not the first time a bank explains that they are developing blockchain solutions. Transactions could be faster and cheaper and data storage more efficient if this technology is implemented. Bank of America and JP Morgan Chase are also investing in Blockchain as well. There is an increase in the use of this technology in different fields and situations. Health Care, governments and financial institutions could benefit from it.

Cryptocurrency Market in India

At the moment, India is moving almost 1 million dollars per day (70,000,000 Indian Rupee). Indian Rupee accounts for 0,02% of the Bitcoin trading. It is the 22^nd most transacted currency for Bitcoin in the world. Though, India should have a stronger market share due the size and importance of its economy.