Published: Sun, April 08, 2018

Cryptocurrency traders on the offensive after RBI clampdown

Cryptocurrency traders on the offensive after RBI clampdown

In the wake of Reserve Bank of India's (RBI) tough stance on cryptocurrencies, exchanges, investors and other stakeholders dealing in cryptocurrency in India may look towards foreign shores. These steps are taken to ensure that the innocent traders do not fall prey to any company's vested interests of duping people off their money.

The Indian Central Bank introduces sweeping new policies as India bans Bitcoin and other cryptocurrencies.

The Minister said that Moody's rating agency also upgraded India's local and foreign currency issuer rating to "Baa2" with a stable outlook, from "Baa3" on the expectation that continued progress in India's economic reforms will enhance India's growth potential over time.

The Central bank's latest clampdown on virtual currencies has triggered defiance and outrage among traders, who insist they will continue dealing in cryptocurrencies using cash and other means.

"We recognise that blockchain technology that lies beneath the virtual currencies has a potential benefit for financial inclusion and enhancing the efficiency of the financial system".

In an another interesting move, the RBI has said it is also mulling the creation of a digital currency.

"Regulated entities which already provide such services shall exit the relationship within a specified time", RBI said in a notice.


Though the directive has come into effect, it is important to note that banks and non-banking entities have been given three months to conclude their dealings in digital currency.

According to a report by CCN, India-based cryptocurrency trading volume had already plummeted by 90 percent in recent months.

Interestingly RBI has also disclosed that it is planning to launch a digital currency of its own and for this, it has set up a study group comprising experts drawn from different departments within the Reserve Bank and the group has been asked to submit its report by June.

Meanwhile, RBI is exploring the creation of its own cryptocurrency.

The Unified Payments Interface (UPI) platform, which is being promoted by the government to push a digital economy in the country, is witnessing dynamic changes with the entry of players like Google Tez and WhatsApp. By, which would be easily stabilized, and would even red introducing a state-backed currency, RBI would be able to reduce the costs of printing paper money.

The RBI is undergoing this project in an attempt to make its services more efficient and improve the country's financial system.

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