India’s ban on cryptocurrencies like Bitcoin, Ethereum or Ripple could be removed as the second interdisciplinary committee on cryptocurrencies in India formed by the central government is likely to recommend lifting the ban and legalize it.
The committee, which will submit its recommendations to the Finance ministry around February 2019, already has two meetings and is in favour of legalising cryptocurrencies in India, which are currently banned by the Reserve Bank of India (RBI), upon recommendations by an earlier government committee back in mid-2017.
There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders, said the report citing a senior official who attended the panel’s meetings.
This means that India may see crypto legalization in 2019, albeit with heavy regulation.
Although RBI has put a ban on cryptocurrencies in April this year, the central bank of India isn’t giving up on the idea of a cryptocurrency completely, as in September 2017 it was reported that RBI is planning to introduce a fiat digital currency called ‘Lakshmi’ coin, which would become an alternative to the Indian rupee for digital transactions, and unlike bitcoin which is a non-fiat digital currency, the new one will be fiat-cryptocurrency.
If the ban on cryptocurrencies managed to get lifted completely in India, then there are several crypto-based startups lined up for entering the country’s market. In January, an Indonesian startup called Pundi X announced that it is preparing to launch point-of-sale network in India so that people in the country can buy and invest in cryptocurrencies not just only online but offline as well.
Just few days back, it was also reported that Facebook is also wants to enter India with its own virtual currency as it is said to be working on making a cryptocurrency called ‘Stablecoin’ that will let users transfer money on WhatsApp messaging app, with India being first remittances market Facebook will be focusing at.
Geneva, Switzerland-based startup, MoonX, which is a decentralized ownership crypto exchange founded by an Indian entrepreneur, is also set to launch a decentralised non-profit trading platform for cryptocurrencies in India.
[Top Image – Golegal.co.za]