The saga surrounding the Reserve Bank of India’s (RBI) cryptocurrency ban continues to take the crypto-sphere by storm. One minute the ban seems well embedded and the whole industry is grinding to a halt and the next, India are set to reverse all mention of the RBI’s decision.
According to a new report by Quartz (India) it is the latter scenario that we are seeing today.
According to Quartz, the Finance Ministry within India may establish a new approach that sets to treat cryptocurrencies as commodities. According to Quartz, a senior member from the Finance Ministry has said:
“I don’t think anyone is really thinking of banning it (cryptocurrencies) altogether. The issue here is about regulating the trade and we need to know where the money is coming from. Allowing it as (a) commodity may let us better regulate trade and so that is being looked at.”
It seems as if the Finance Ministry are struggling to recognise the justifications outlined by the RBI, who implemented this ban in the first place. Furthermore, according to the same official:
“Trade is not a criminal offence. Most of us trade in various asset classes in the stock market. So how is this (cryptocurrency trading) any different? What has to be in place is a mechanism to be sure that the money used is not illegal money, and to track its source is the most important thing.”
You can see the full report for yourself, here.
By commodifying cryptocurrencies, the Finance Ministry will be able to clear up some concerns that have been expressed by the RBI. By ensuring crypto is seen as a commodity, the RBI will be able to distinguish a different between FIAT currencies and crypto, as a commodity is not a currency as such. According to Quartz, the former Deputy Governor from the RBI, R. Ghandi has said:
“If these are used to settle transactions, then it acquires the nature of currency. So that is one thing that one needs to be wary of. But if people want to invest in a commodity then that is different, because then we can assume that they are aware of the risks involved.”
What does this mean for cryptocurrency in India?
As expected, the country will not let the RBI decision rest. It seems that resistance is being felt from all levels, within the crypto community, from exchanges and even from government officials. Because of this, the government cannot ignore the countries desire to succeed within this industry. Indeed, India are at the fore of a blockchain revolution and therefore, the abolishment of cryptocurrency is only damaging their progression. I do believe that soon enough, the RBI’s decision will be overturned and that eventually, we will see safe, regulated and masses of cryptocurrency trading begin to take hold in India once again.
Crypto is a community that cannot be ignored. Together, the community in India are ensuring that this censorship cannot happen again.