The drama surrounding the recent ban on cryptocurrency activity by the Reserve Bank of India (RBI) has subsided somewhat over recent weeks. In the wake of the ban, the cryptocurrency community created a bit of a storm, producing a petition to encourage the bank to re-consider its ruling. Since then, the Delhi High Court have made moves to encourage the RBI to justify their decision. Overall though, many people are still pretty worried about the future of cryptocurrency within India, a country once considered to be at the cutting edge of cryptography and blockchain technology.
In a report from the Economic Times (India) out today, we see a discussion regarding why many traders within India aren’t actually concerned by these moves from the RBI. The premise of this is that whilst the RBI’s rules aren’t yet in full force, many investors are still able to convert rupees (India’s currency) into cryptocurrencies, which in turn can be exchanged within private exchanges at a later date, after the banks rules take over. Such private exchanges should of course be immune from the RBI’s ruling.
According to the Economic Times, Shivam Thakral, the CEO of cryptocurrency exchange BuyUcoin has said:
"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.“New investors are coming to our exchanges while existing ones are regaining interest after the drop because they're getting good value and are making money as the prices of cryptocurrencies move higher.”
The drop referred to here happened in the wake of the RBI’s announcement, overall the markets saw a bit of a plunge and naturally, trading volume within India sunk dramatically. Now, according to the Economic Times, trading volume within India has recovered, reaching peaks of around $75Million, similar to the levels witnessed prior to the RBI’s move.
This revelation regarding trading volume, looks to suggest that really, people in India aren’t worried about the RBI’s attempt to regulate. This may of course be influenced by the Delhi High Courts refusal to accept the RBI’s ruling without further justification. As it stands, the RBI have a few weeks left before an official statement needs to be made.
You can read the full report by the Economic Times, here- https://economictimes.indiatimes.com/markets/stocks/news/why-traders-feel-cryptocurrency-is-going-to-survive-rbis-ban/articleshow/64026629.cms
Overall, whilst from the outset it did seem that the RBI’s decision was going to be disastrous for cryptocurrencies in India. Through perseverance however, it does seem that actually, the cryptocurrency industry will still continue to flourish, even with the RBI weighing in. As time goes on, people are starting to realise that the general consensus here is positive towards cryptocurrency and that as it stands, the RBI are the minority. Power in numbers, and all that.