RBI had notified all financial institutions to abstain from crypto-related matters last year. However, the resolution is around the corner; the Supreme court has set the final hearing for the 23rd of July this year. The court has asked the RBI to formulate regulation and settle this issue for good.
Since the ban on cryptocurrency by the RBI took effect, the Indian crypto circuit has been in a fugue state. Many experts point towards the ambiguity and newness of the virtual currency as the reason behind the indecision of the money handlers of the country. Some point fingers to the complacency and the rigid mindset of the same money handlers as the setback.
Both arguments hold water to some extent.
Cryptocurrency is decentralised and anonymous, hence tracking and keeping a check on transactions is near impossible. The anonymity of the system even makes it difficult to trace theft or fraudulent behaviour. Above that, the fear of destabilising the Indian Rupee is also a significant cause of uncertainty, although adoption of cryptocurrency has not destabilised the currency of any country so far.
On the other hand, adoption of this new technology should statistically be smooth, given that India 83% of the population have readily adopted new technology, as per a poll conducted by Statista. Indians have been readily accepting new financing solution technology and is second only to China when it comes to adopting new technology.
The lethargy to act promptly and create adequate legislation has put the industry on the back foot. The existing rigidity in the legislature coupled with the ambiguity of the new technology has left make budding entrepreneurs and crypto-enthusiasts in the dark while other countries have embarked on their path of exploration.
India might have a late start, but we will start nonetheless. That is of course if the regulations formulated by the RBI for the July 23rd hearing is favourable.
