India’s stand on Cryptocurrency

Over the past few years, despite the lack of regulations in the Indian digital currency industry, a few Bitcoin exchanges have sprung up and started operating with self-regulated trading platforms with strict Know Your Customer(KYC) and anti-money laundering systems in place. These include startups like Zebpay, Coinsecure and Unocoin. These startups have also raised funding from investors and have slowly been building faith in the Bitcoin and digital currency sector despite skeptism from the government.

In 2015, RBI published a financial report which identified the importance of ‘private blockchains’ having potential to transform how bank back-end operations function, as well as increasing the speed of payment.In that year itself former RBI governor Raghuram ranjan stated that ‘India’s central bank could use some digital currencies.’

Department of Economic affair in the Ministry of finance formed a committee to explain the framework on virtual currencies. Additionally, private bitcoin companies formed- The Digital Assests and Blockchain Foundation India (DABFI).

Cryptocurrencies future in India looks promising. As per reports, India counts over 1 million bitcoin users. Legalising cryptocurrency will further increase trading volumes and cryptocurencies activities in India. Legalising would also help remove apprehensions around its reliability as currency for the average Indian consumer. With the government legalising it, cryptocurrency service providers will also be able to expand the scope of usage.

In future cryptocurrecy will build an impoved infrastructure that would help support remittances to India and also provide online financial solutions for the country’s unbanked and undeserved population. No doubt cryptocurrency will move India toward a better digitial tommorow.

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MIHIR
Community Manager & Researcher
Team Indicoin