The central bank of India has barred all transactions of cryptocurrency. The recent news said that the bank had not to ban Bitcoin and Ethereum cryptocurrency. In the statement, the India Central bank said cryptocurrency are entities that the bank does not engage in, but it is one of the financial instruments.
The statement above came during the court case that involved the Internet and mobile users association (IAMAI) and the Central bank. IAMAI demanded all banks remove the regulation that came into function in the year 2018. This regulation banned all businesses from trading in cryptocurrency as a good business.
The association wants cryptocurrency trading in India to be legal because there is no policy banning it. Also, the group told the court that banned cryptocurrency trading by blocking all the platforms that one can use to access the bank. In another statement, the reserve bank of India declared that it did not prevent the trading platforms. Still, it only instructed financial institutions not to deal with cryptocurrency trading in banks. The reserve bank said it was worried about the effect of the cryptocurrency, it will cause to banks and the banking industries.
The discussion from legal experts said that the IAMAI could win against RBI in the Supreme Court. They added that the bank does not have a substantial reason to ban cryptocurrency in the country. In other news that occurred in Bengaluru, there was a launch of a new Blockchain innovation hub. The launching was done by Mr. Ravi, who is that minister in charge of Unions in India. The Centre will have different government departments hat deal will applications in the same field he said. The primary aim of the Centre is to motivate a countrywide adoption of Blockchain in India.
The center development was by the National Information Center NIC, intending to provide Blockchain as a service that enables everyone to know how to share resources. The NIC is the one in charge of technological development and information solution in the ministries and other government agencies.
The current condition of the reserve bank of India is equal to that of China, which all people to trade on Blockchain but do not involve a bank. India is highly worried about the effect of cryptocurrency in the market. In China, the parliament is trying to change the law to enhance healthy blockchain development.