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What can the blockchain industry do to stave off the impending ban on cryptocurrencies in India?

Updated: Jul 6, 2021

Produce outcomes that are able to showcase beneficial impact of leveraging the blockchain based cryptonomy. The primary starting point could be the goal of #financialinclusion, i.e., connecting the unbanked population to payment systems and financial products.

Recently, RBI noted that non-bank entities should be allowed to participate in #centralized payment systems such as #RTGS and #NEFT, which were exclusive to banks and few select institutions.

RBI's stated reason was that such non-bank entities (card networks, digital wallet (PPI) issuers among others) have introduced technological innovations and offered customized solutions to users.

The unstated reason could be RBI's attempt to evangelize #centralized settlement systems in order to fight back against #DeFi promising a more exciting alternative. It could be surmised that RBI may not have missed news of Visa announcing crypto based settlements and Paypal's crypto checkout services.

The larger point remains - that regulatory acceptance and embracement of #cryptos could become a more visible future reality - if only the industry participants can channelize the technology to make lives easier for the unbanked. This could be a tad bit difficult because currently, crypto's benefits are available to the already banked.

Important Disclaimer: The information provided herein this article is our interpretation and understanding of the law. The legal analysis presented hereinabove is not given for application to any specific set of facts or circumstances peculiar to you or your organization. You may rely on the write-up for your peculiar facts or circumstances at your sole risk only. We will not be liable, answerable or responsible to you under any client-attorney relationship.


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