RBI Bans Cryptocurrency: The Reserve Bank of India has put forward another effort to ban cryptocurrency trade in India. RBI asked banks to stop the banking operations of any known cryptocurrency exchanges or traders operating out of India on Thursday. This comes while the draft bill to legalize the ban on cryptocurrency trading is pending approval.
In the last few months, many payment gateways stopped the cryptocurrency exchange. This made crypto exchangers a direct contact with the customers to deposit in the account for trading. This increased the issue in transaction times. For this, RBI asking banks to stop baking operations for these entities, it will become technically impossible for cryptocurrency exchange to operate.
To do this, RBI gave three month time for the banks. It will be very difficult for the people holding bitcoin should do sell within three months. But currently, the market is low. At a global level bitcoin is facing tough sanctions and regulations. Bitcoin dropped from its year-end high of 20000$ to 6000$.
Cryptocurrency in India
Zebpay and Unocoin are some top bitcoin trading platforms in India and it is estimated that over a 1 Billion USD exchange of cryptocurrency happens in India. Research states that over the last few months there is a steady decline of crypto trading in India. There were numerous scams and Ponzi schemes happening around ICO and Cryptocurrencies.
Besides that RBI have planned to launch fiat digital currency. Kanungo has said that such a currency will also reduce the cost of printing and circulating paper currency. Reserve Bank of India will soon provide guidance on the desirability and feasibility to introduce a central bank digital currency.