India’s central bank is shutting the door on bitcoin and other crypto-currencies

India’s central bank is shutting the door on bitcoin and other crypto-currencies

Crypto-currency can be one of the most intriguing things in the financial world right now, but they failed to impress the central bank of India.

In a rather long statement of its position, the director of the Reserve Bank of India (RBI) has made it clear that virtual currencies like Bitcoin will not be allowed in the country. "Our current position on Bitcoins is that we will not use it for any payment and settlement ... although the technology that lies at the heart of the crypto-currency is not over," said S Ganesh Kumar, Executive Director, RBI, at a conference in Mumbai in November. 06.

No More Bitcoins in India Says RBI

India’s central bank is shutting the door on bitcoin and other crypto-currencies

Comments from Kumar probably end up with much of the speculation about the legitimacy of virtual currencies in India. However, blockchain technology, which is underlying these virtual currencies, has significant potential, added Kumar. Indian banks are already trusting in blockchain to allow overseas transactions, international remittances and other processes.

A few months ago, talking about the government that maintained the use of cryptic currencies gained momentum, although official notification is expected to ban its use.The RBI previously understood the possibility that India had its own crypto-currency, supported by the central bank, and added that it had no confidence in existing virtual currencies that are private.

In August, a panel of the Ministry of Finance also recommended that virtual currencies should be banned in the country due to its possible misuse of money laundering and fraud. Among other reasons, the price increase of bitcoin caused the government to be uncomfortable. On November 6, for example, a single bitcoin was worth Rs4.92 lakh ($ 7,610.80), more than double its value three months ago.

The cryptographic ecosystem in India is very small: Bitcoin is accepted in just a few restaurants and some virtual currency exchanges allow users to make payments for books or movie tickets. It is mainly used as an investment option.

Unsurprisingly, participants in India's virtual currency trading are upset. "We will do our best to continue our efforts to educate the government about cryptic currencies," said Sandeep Goenka, co-founder of Zebpay, a bitcoin exchange. "It can be useful for India turning the country into a fintech center, to increase financial inclusion, and there are many other benefits to that."