RBI Says Crypto Not Banned in India but Offers Little in Terms of Utility

The Reserve Bank of India on Wednesday made a strong statement against Crypto and asserted that residents of India are in no need of cryptos as the country’s main financial system is equipped with effective working solutions for taking care of cross-border payments. Apart from this, the central bank also put a spotlight on the legal status of cryptocurrencies in India and clarified that the virtual currencies are not banned in India.

According to a leading publication, RBI asserted in clear terms that cryptos have been offering very little in terms of utility, and it may lead to a surge in illegal activities. Earlier, Internet and Mobile Association of India had filed a petition in the year 2018. RBI was responding to the petition earlier this week. The apex bank also spoke about the presence of the Liberalised Remittances Scheme that permits individuals to transfer up to $2, 50,000 to any part of the world every year.

Meanwhile, people backing crypto offered their contention and said that the virtual currencies help in creating a more inclusive ecosystem and open up the financial sector. While others claimed that the payment systems of cryptocurrencies are economical and faster in comparison to their mainstream counterparts.

RBI also claimed that cryptos might also pose various risks that may include terrorist financing and money laundering. The apex bank of India said,

It is worth noting that a large number of research data has gone on to show that crypto may be playing only a small part in activities such as unlawful financial activities and money laundering.

However, at the same time, RBI mentioned that the country’s government promotes revolution in digital technology barring cryptos. Meanwhile, firms creating a blockchain-based solution will be getting necessary support, as per the latest RBI statement.

You can get an overall view of what took place inside the courtroom yesterday. The RBI vs. Crypto hearing has seen unexpected talks in these last few days.

Meanwhile, the apex bank also clarified that there is no such ban as of now on cryptos. However, financial institutions and commercial banks have been forbidden from providing services to cryptocurrencies.

Earlier, the government of India refrained from taking up an anticipated crypto ban bill for the winter session of Parliament. It will be interesting to see how things unfold for the cryptosystem in India.

After inspecting the scenario throughout the day, CryptonewsZ expressed that RBI had not done appropriate research before announcing its anti-crypto directive.