Yesterday, a bunch of reports surfaced from the Reserve Bank of India (RBI) with two rather contradictory claims.
Firstly, it seemed that the RBI would be cutting ties with any customers or businesses who traded cryptocurrency, in a report that referred to its customers as ‘entities’ the RBI seemed to be threatening to cut off customers who had involvement in cryptocurrencies after a certain period of time.
The second report, in a slightly different tone, highlighted that the RBI wanted to create their own central cryptocurrency for use within their banking facilities.
I had speculated a number of parallels that could be drawn within these contradictions, but ultimately it did seem like a bit of a storm, today, however, we perhaps have some further clarification with regards to what is going on here.
According to the Economic Times (India):
“The Reserve Bank of India mandated banks, e-wallets and payment gateway providers to withdraw support for cryptocurrency exchanges and other businesses dealing with virtual currencies in India.”
Now apparently, this has caused a bit of a stir within the Twitter-sphere which has resulted in the start of a campaign called #RBICantStopMe, which has really got people talking, or tweeting, like little birds.
@narendramodi @arunjaitley @RBI#ISupportCrypto #RBIcantstopme
Why is #cryptocurrency banned in a democratic nation like india? When you had announced in your budget,That government has no interference into crypto matters.
The biggest hypocrasy with Digital Nation #India
— Arijit Dey (@ArjitDey) April 6, 2018
People are really angry about this, and rightly so. I guess this does confirm that the allegations against the RBI are true. Cryptocurrency is often defined as the essence of democracy, India, a democracy, is now using a punishment-based system through their central banks to cut cryptocurrency trading, but to what benefit?
If yesterday’s reports about the RBI wanting to create their own digital currency are true, then I think its pretty safe to conclude that they are just cleaning up the market for themselves, so their currency can become sovereign and profitable, but it’s still a very contradictive move that will upset a lot of people. If #RBICantStopMe is to go by then a lot of people are already very taken back.
It’s really unfortunate that such a technologically developing nation can decide to take measures like this to block further technological advancement that really poses no threat to society, so long as security measures are correctly implemented. The statement from the RBI is almost regressive, yes many nations want to control cryptocurrency because governments are uncertain about how it’s culture will grow, so they want to regulate the markets (it’s sort of understandable in a way although I don’t think it’s the right way to go) but it’s certainly more positive than just binning off your customers if they don’t comply with new, irrational laws you have established.
If you’re interested in how this story develops, search for the hashtag #RBICantStopMe to gain some real insight into how people feel about this. They are upset. I sure hope that officials from the RBI are seeing these tweets and maybe they can consider re-thinking their decision before its too late.
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