RBI in favor of total crypto ban in India
The Reserve Bank of India has, in its deliberations, been in favor of a total ban on crypto currencies within India as it believes that it would be difficult to monitor and control its flow within the country.
Indian crypto industry is entering a crucial period in its growth and development where the next few months could determine whether it emerges as a crypto powerhouse by welcoming the industry internally and also setting the stage for other companies to set up shop in the region or whether it chooses to lie low and not allow the crypto industry to develop.
New Crypto Bill
This is expected to be determined by the new Crypto bill which was to be introduced in the current session of the Indian Parliament. But that seems to have been delayed and there does not seem to be any news surrounding the same. It is also believed that the government may choose to delay the Bill as it has not yet decided on whether to regulate the industry or totally ban crypto and even if it chooses to regulate it, the government does not seem to be sure of the way ahead.
The RBI, on the other hand, has been pretty clear right from the start that it is not in favor of cryptos and that it would like to have a total ban on it,
“Cryptocurrencies are a serious concern to RBI from a macroeconomic and financial stability standpoint,” RBI governor Shaktikanta Das had said previously. “As the central banker, we have serious concerns about it and we have flagged it many times.”
CBDCs Also a Concern
The other members of the board seem to be leaning towards regulating the cryptocurrencies in the country rather than total ban as it is clear that blockchains and cryptos form the base for the next huge leap in the financial industry and the failure to adopt the same would most likely to the country being left behind in this aspect.
It is likely to be a tense time for those who have thrown their lot behind the crypto industry in India but it looks as though the bill might get delayed by another 6 months which is likely to give some breathing space for all involved. This would give the time for the government to formulate a proper plan for the CBDCs which it may not be ready with, at the moment.