On April 5th 2018, Reserve Bank Of India, issued circular warning banks to stop dealing with any crypto exchanges in India in the next 3 months. Just after 10 days of this announcement ATMs are running out of cash in the country! Is this just a coincidence or people of India have lost trust in the banks.
The current economic situation in India is really scary. India has been the country where the amount of corruption has exceeded and many more corporate bad loans looming over, which may have resulted into cash crunch in India. India has proposed to print more money. Is printing money a viable solution... Is India on the verge to become next Zimbabwe???
In 2008 Zimbabwe also ordered to print more money which ultimately resulted in hyper inflation..Zimbabwe's peak month of inflation is estimated at 79.6 billion percent in mid-November 2008. In 2009, Zimbabwe stopped printing its currency, with currencies from other countries were being used. During that time 100-trillion-dollar Zimbabwe note was worth just 40 U.S. cents.
Question really is that is printing more money the solution to the Problem?? Instead of why can't the developing countries like india,pakistan, etc.. should follow like japan and australia, looking at bitcoin as innovative new technology instead of banning them completely.
China tried and failed, now India wants to try. Reserve Bank Of India had a great chance to regulate it by legitimising Indian crypto exchanges instead they are pushing people towards p2p exchanges and allowing them to deal only in cash.
This will get worse once the RBI ban on crypto transactions via banks comes into effect after 3 months. It's in India's best interest for the RBI to continue allowing crypto transactions via banking else cash usage will shoot up, which may ultimately result in hyper inflation. When people cannot do bank transfers, they'll resort to cash to buy/sell crypto.