Bitcoin: Is It Possible That Big Fish In Pond Get Avoided By RBI?
The virtual currencies like Bitcoin are available in FinTech and global commerce can be transformed in the upcoming years. Thousands of users are adopting it daily and an unparalleled growth is seen in the trading value of these currencies.
The RBI issued a cautionary press released on 1 February followed by a press released in December 2013. It warns the users about the risk they should be already aware of because it doesn’t regulate and licensed by any Indian virtual currencies.
On 1 March, the RBI Deputy Governor R. Gandhi raises the concerns related to the virtual currencies. He said that they possess the potential customer protection, financial, legal and security regarding dangers.
According to an estimate in August 2016, the number of Indian Bitcoin users is nearly 50,000 and it is increasing regularly. The country is also home to many prominent exchanges of Bitcoin like Coinsecure, Zebpay, Unocoin, and BTCXIndia. It is estimated that the number of bitcoin users may reach five million by 2019 across the world.
The Bitcoin was quoted to inflate to nearly 20-25 % over costing after the ban of the cash. The Bitcoin trades at RS 90,000 for a single bitcoin as per 2 March. As per October 2016, this value was near RS 40,000.
The Institute for Development & Research in Banking Technology which is the research wing for RBI issues a white paper on the uses for the blockchain technology in the Indian financial and banking markets in January 2017. It acknowledges the rise of virtual currencies. However, it steers towards the technology behind the blockchain than the regulation of the virtual currency.
There are many countries in the India’s own neighborhood who have adopted and near to adopt the virtual currency regulation in a certain way. It consists of Russia, China, Philippines, and Singapore who have issued guidelines for virtual currency exchanges.