In India, cryptocurrency investments have risen despite RBI’s harsh stand on digital currency. The rise has been attributed to the optimism that the investors have on the Indian cryptocurrency market.
According to NDTV,
“Getting in now enables investors to convert rupees into cryptocurrencies, which they can later swap for other coins via private trading platforms even after the central bank’s rules take hold.”
Thakral Shivam, CEO, BuyUcoin, a cryptocurrency exchange, also noted that,
“There is a positive sentiment in the industry that the government will not ban trading in cryptocurrencies, and even if formal banking channels cannot be used, people can move to crypto-crypto trading platforms”
Although the Indian government is fearing virtual currencies would be used for illegal purposes, financial analysts in the country are cautioning that removing the cryptos from their watch will spur the illegal usage of virtual money.
Some investors in India are optimistic that even if the RBI’s directive is implemented, trading will, most likely, shift to Telegram, point to point platforms or social media sites.
Earlier last month, the Reserve Bank of India (RBI) distanced itself from any institution dealing with cryptocurrency in the country.
All the country’s banks were requested, with immediate effect, to cease any dealings with crypto related businesses such as cryptocurrency exchanges latest by July this year.
In a defensive mode, cryptocurrency exchanges in the country sued RBI citing RBI’s failure to follow the country’s constitution.
Although the case has not been determined, the cryptocurrency investments in India have risen after a sharp fall which was attributed to RBI’s directive.
RBI's stand on cryptocurrencies and bitcoins?
For example, Bitcoin prices which had depreciated to almost 350K Indian rupees have seen a tremendous recovery and are back to 618K Indian rupees which is valued slightly above 9.2K US dollars.
Since the cryptocurrency investments have risen despite RBI’s regulations, do you think India will follow China’s way of managing cryptocurrencies or will they soften their stance and regulate the cryptocurrency market?
Let us know in the comments section below.
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Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space.
With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.