“It has said that it wants to ring-fence gullible investors and lenders from scams, several of which have happened internationally.”Next up, the RBI seem to worry about the anonymity and privacy that shrouds cryptocurrencies. Of course, they seem to forget how anonymity is still possible within FIAT currency, regardless of this though, crypto is public enemy number one because it gives uses ultimate privacy, something that the RBI don’t like. According to Quartz:
“Another reason cited by the RBI is the anonymity of the transactions and, therefore, the difficulty in tracking the source of money. The firms have refuted this, too, claiming strict adherence to know-your-customer norms to prevent money-laundering.”Finally, the last (and quite key) worry for the RBI is that they believe cryptocurrency has no intrinsic value, it’s essentially worthless because it isn’t backed by a viable asset. We however know that cryptocurrency is in itself an asset, so requires no such backing. You can see the full report by Quartz for yourself, here. These reasons are similar to the factors that seem to worry governments and authorities worldwide. Until we can remove the stigma that plagues cryptocurrencies the RBI and other similar authorities won’t reverse their decisions. Not only because they feel strongly about the issue but also, going back on such a big decision may be seen as a public embarrassment. EIther way though, it is handy to see what the RBI are worried about. Hopefully the teams that are working to change the rules in India know this and have an accurate plan of attack, otherwise, India may disappear off the crypto-coaster for good.