When we talk about CryptoCurrency or Blockchain, India is one of the most popular countries participating in the Market Capital as well technology adaption. But what is India’s take on Bitcoin?
If in one word I had to explain its “Confused.”
Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI), two biggest government organizations responsible to decide Bitcoins fate in India are just running away from their responsibility by putting the decision on one another. RBI considers Bitcoin to be a Commodity and wants SEBI to take the charge. SEBI wants Bitcoin to be handled by RBI as it is a Currency. As of now, Zebpay & Unocoin are the companies operating in India related to Bitcoin but still the regulators are not clear on the stance regarding Bitcoin or any Crypto Currency. At the time of posting, currently Bitcoin is priced at around 520,000 INR at Zebpay in India.
Unocoin , another bitcoin provider in India, promoting use of Bitcoin at local stores.
When Governments fail the decide policies and share clear guidelines, Court has to step in to provide clarity. A Public Interest Litigation (PIL) has already filed in Supreme Court, India to clear instructions and regulations regarding Bitcoin Operations in the country.
Not everyone in India who is putting their money into Bitcoin really know what it is or how it is going to benefit them. Everyone has just heard stories of people getting rich from Bitcoin so they too want to earn easy money to become Bitcoin Millionaires.
During the last FinTech conference in Mumbai, India, Executive Director of RBI has clearly stated that they are not comfortable with non-fiat cryptocurrenices specially when any of the currency is not issued by Reserve Bank of India. It is somehow understood that Government do not intend to allow or use cryptocurrencies for payments and settlements. Rather government intend to use its own cryptocurrency LAKSHMI which will be centralized and under Government's control and surveillance. Read more about Lakshmi in my previous post here.
Rather Bitcoin in India is still unregulated and even after stern warnings from Government, more and more people from India are associating with Bitcoin specially after the affect of demonetization that affected Indian Economy last year. Also professionals and freelancers who provide online services to overseas clients have started requesting to receive money in Bitcoin as they can receive the payments instantly as well as their valuation of money is increasing with time.
