The Silence of RBI: Can Crypto be Great Again in India?
The Reserve Bank of India (RBI) has replied to a question about why it decided to block banks from working with cryptocurrency companies earlier this year – but the comment isn’t very revealing.
Shri Varun Sethi, who introduces himself as a “blockchain lawyer,” asked for clarifications from RBI following the Right to Information Act. According to the responses provided, the choice didn’t result from any research or inquiry by the regulator.
For example, controllers aid “no” when questioned whether the central bank had assembled a commission to investigate the nature and dangers of blockchain tech. And while prior statements from the RBI citing reports regarding the use of crypto for illegal practices, the central bank failed to name which ones it pointed to.
It also declined to clarify if there were any expert judgments solicited on the subject, if the RBI had received any data on cryptocurrency exchanges in India and if administrators made any attempt to draft a framework for using cryptocurrencies inside the national banking system.
To all these mysteries, the bank responded that this data hasn’t to be provided under the Right to Information Act – so there would be no answers.
The newest twist comes months later when central bank executives in India announced that the companies it regulates couldn’t work with cryptocurrencies. The provocative announcement has since sparked some legal difficulties which have made their entrance to the national Supreme Court. We’ll be keeping an eye on the development of this story. Stay tuned!
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