Cryptocurrencies have been changing every business market in every country including India, sufficient enough to say it has been changing the business market of the whole world. A country like having many traditional values are reluctant before exploring something new and trusting the new values.
India and cryptocurrency markets
Banking service as it is in India has many sentiments and follows strict protocols to make sure that there are no malicious content or malicious practices between both the parties and bank as third party makes sure of this. When these protocols are not followed they are penalized with heavy consequences to make sure the mistake does not happen again.
In a market such as cryptocurrency the transactions happen between two parties without any interference from the third party. There is not much availability to records and the transaction procedures are privatized too. Operations such as this are threatening to the protocols followed by the Indian markets. Thus, Indian financial markets are reluctant towards moving towards the cryptocurrency markets.
What is Bitcoin
Bitcoin is a digital currency that are issued in the form of virtual digital coins in various digital currency exchange platforms where users can use them to trade and transact for their financial purposes either as an individual or as business entity.
India and its differences with Bitcoin
Indian markets are always sure of what is next in terms of financial analysis and markets to meet out demands and make sure the country does not run into an economic crash. India has a low gross domestic profit (GDP) compared to other fast-growing countries making it try harder and harder to level its financial markets with advancing countries.
When cryptocurrencies such as Bitcoin entered the Indian markets, it threatened many businesses as there is no middle man in it. This led every financial analyst in India to believe that this might give an opportunity to all malicious practitioners to undertake this as an opportunity to hack or use this virtual money for malicious threats. But this did not lead India to consider banning Bitcoin but rather the incident that took place regarding Bitcoin in the foreign markets is what lead Reserve Bank of India (RBI) to put a notice to all Indian banks asking it to shut down all operations that is taking place with Bitcoin or any other cryptocurrency as a means of financial transactions.
The major incident that first led Reserve Bank of India (RBI) to send out a notice such as that was because of the price inflation that was noticed in Bitcoin. The sudden price inflation of Bitcoin overnight started making Reserve Bank of India wonder what would it be the consequence if the more and more Indian business markets started investing in it too. Because of Bitcoin inflation, the price of everything in India markets would go high making it a difficult situation for all the customers as well as the Indian people as it would affect the daily life of the public too.
Considering this Reserve Bank of India issued a notice to all banks asking them to stop all transactions that was under Bitcoin transactions. All investors were given a period of time to sell them and exit the Bitcoin market. All investors who saw the potential of Bitcoin filed a petition on this subject to The Supreme Court of India asking for it to release the notice and allow everyone to use Bitcoins. However, there is not much development on the case as of yet. So, if any individual wants to buy a Bitcoin and trade them, they are still allowed to do it. It just that business entities cannot do transactions under Bitcoin as it goes against the ReserveBankofIndian rules and the ban it is trying to impose on Bitcoin being used by business markets of India.
The operational line of Bitcoin in India has been on a process towards its ban starting from investors of India investing in Bitcoin which led Reserve Bank of India to analyse Bitcoin by which they noticed high inflation and price fluctuations leading to issuing the notice to all banks of India to stop using Bitcoin and then the government imposing heavy duty taxes on everyone investing in Bitcoin to stop the practice of using them which then was followed by the Indian financial ministers issuing a bill stating activities using Bitcoin as a medium for transaction will not be encouraged. Various analysts and research teams from India have been appointed to study how Bitcoin works and their opportunities along with their drawbacks. Meanwhile in India some research teams have been trying to prove that Bitcoin is dangerous to support Reserve Bank of India. The supreme court finally issued a ban but upon many files petitioned as a plea to lift the ban, the supreme court of India has been reconsidering its decision and is waiting to make the announcement if the ban will be lifted or not for using Bitcoin. This ban lift was supposed to be announced on September 11th which got postponed to September 17th and then again postponed to coming Monday.