India wants to ban Bitcoin to create its own cryptocurrency
Reserve Bank of India declared that, as Indian central banking authority, it will stop trading with any sort of business or legal person that in focused on cryptocurrencies.
This is a strong move after the words of India’s Ministry of Finance that bashed Bitcoin for its volatility and inconsistency. The ban will be applied in 3 months, time that the investors and the companies involved in cryptocurrency trading, must use to sell all the assets or relocate the businesses.
The reasons that push RBI to this move are the same that we saw in all the debates between authority and cryptocurrency trading: consumer protection, market integrity, and over all money laundering, strongly felt theme by the deputy governor of the RBI.
From that point the RBI will not support the trade and support, it will be terribly difficult to continue using Cryptos with Indian bank account (RBI regulates all banks in the country).
On the other side RBI plan to create its own cryptocurrency goes on. The implementation of blockchain technology would cut down all costs connected to transporting, physical money and unscalable procedures.
The state-backed cryptocurrency would be close to a digitalization of a traditional currency, like other project started by Venezuela and Turkey, or other driven by bank institutes with Ripple technology support.
Even if the Indian cryptocurrency market is not so extended the potential of the country is huge, and RBI decision could drive to unexpected consequences: the needs of people with no bank account could induce people to use unregulated trader even harder to control and make safe.