Reserve Bank of India signals cryptocurrencies ban

Is India shutting down the door on Bitcoin and other cryptocurrencies as they have failed to impress the central bank in the country? Concerning the fact, Reserve Bank of India signals cryptocurrencies ban.

8 November, AtoZForex The central bank in India has signalled that digital currencies like Bitcoin and Ethereum will not be allowed in the country, according to a report.

India signals cryptocurrencies ban

Speaking at a conference held in Mumbai, Reserve Bank of India (RBI) executive director S Ganesh Kumar stated:

“Our current position on Bitcoins is that we will not be using it for any payments and settlements…though the technology underlying cryptocurrencies will not end.”

However, the RBI has showcased support towards on Blockchain technology despite the rejection of the cryptocurrencies. In the comments, Kumar has expressed that the technology showed great potential in the financial sector.

Indeed, banks in India are relying on Blockchain to enable overseas transactions and international remittances. The government curbing the cryptocurrencies usage has gained momentum, although an official notification to ban their use is still waiting. Earlier, the central bank had also hinted that it will issue its own digital currency. But, lacked confidence in existing virtual currencies, the RBI added.

Usage of virtual currencies in India as an investment option

Recently, a government panel also has recommended that virtual currency should be banned in the country due to their potential misuse for money laundering and fraud. However, the soaring price of Bitcoin has made the government uneasy. Only some restaurants accept Bitcoin and virtual currency exchanges allow users to make payments via Bitcoin. Particularly, people use virtual currencies mainly as an investment option.

The possible ban of the digital currencies in India has displeased the investors in the virtual currency trade. According to the investors in India, they will try to educate the government about the cryptocurrencies.

“We will do our best to continue with our efforts to educate the government about cryptocurrencies. It can be useful for India by turning the country into a fintech hub, to increase financial inclusion, and there are several other benefits of it,” says Zebpay co-founder Sandeep Goenka.

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