After so many warnings from India’s government authorities including country’s Finance Minister ‘Arun Jaitley’. The Reserve Bank of India has finally issued a statement saying they are allowing three months to regulated entities like banks to unwind their role from offering any monetary services to individual/businesses dealing in digital currencies.
Bitcoin and Cryptocurrencies are Banned In India
BP Kanungo, RBI Deputy Governor said: “If cryptocurrencies grow beyond a critical size they can endanger financial stability”.
He further added that they will continue to promote the use of blockchain – a public ledger that serves as the backbone of bitcoin – in financial services for strengthening transparency and improving inclusion.
RBI said that it will issue detailed guidelines in a form of circular soon.
“These are issued by the central bank and are considered the liability of the central bank,” Kanungo said. “They will be in circulation in addition to the paper currency that we have. It also holds the promise of reducing the cost of printing notes.”
On this, Vishal Gupta, co-founder of the Digital Assets and Blockchain Foundation of India said in a media statement “That effectively means people lose the ability to conduct any trade or exchange, at least in the open market,”.