Reserve Bank of India - Most confused financial entity right now!

[amishmanish]

Some of the government lapdogs have now jumped into the fray. Rakesh Jhunjhunwala, regarded as one of the most well known equity investors in India have come up with a strange logic. He says that he don't like Bitcoin and therefore government should make it illegal. This Jhunjhunwala guy was earlier charged with insider trading and market manipulation, but due to his close bond with the ruling party, the investigation into these crimes were suspended.

https://economictimes.indiatimes.com/markets/stocks/news/indias-bitcoin-owners-get-sinking-feeling-as-jhunjhunwala-calls-for-its-ban/articleshow/81172933.cms

“I think regulators should step in and ban Bitcoin. I think it’s speculation of the highest order. I will never buy Bitcoin,” Jhunjhunwala, often referred to as India’s own Warren Buffett, told US business network CNBC in an interview.

LOL. India's own Warren Buffett. Everything that the west does, we have to find a representation for that. Almost every hill-station in India will have a nickname resembling "Swiss of the East". We never want to take the initiative and actually use innovation until some precedence has been set.
The same is happening with the talk about this legislation. Indian entrepreneurs who put their time and effort into Bitcoin related products did not do so to see this day. It is hard to fathom that a good Govt. will do this to its own citizens. If this happens only because the crypto users are small in numbers, it'll be another one of sure signs of a failing democracy and the bankruptcy of ideas within ruling establishment.

[South Park]

That is something they are capable to do, after all they control the fiat system so they can block bank accounts if that is what they want, however if they do this then people are simply going to move to P2P, now this is not going to be able to support the current trade levels that we see and this could decrease the price, but since governments are in such a difficult shape due to the pandemic I doubt every single one of them will decide to do something like this and many exchanges will simply move to jurisdictions that cater to them simply because the taxes the industry will bring are incredibly high, so no matter what governments do it seems they will never be able to come close to eliminate cryptocurrencies.

P2P platforms are not safe either. If you are using an Indian bank account, then it gets risky. Because the government can easily obtain transaction logs for all these accounts. I have checked a number of p2p platforms within India, and many of the traders have gone in the stealth mode. They have removed the Whatsapp numbers from their profile and have instead given the Telegram ids. And from what I have heard, the payments are being made from multiple bank accounts to prevent detection.

As I said governments control the fiat system so I am not surprised that they need to take all of those precautions if they still want to send or accept payments in their bank accounts, but those people can still take a step further, avoid using P2P platforms and try to connect directly to those that want to buy and sell bitcoin, and instead of using their bank accounts they can use cash, this is going to slow down their business even further but it is possible they will have to do that in order to stay afloat.

[Sithara007]

As I said governments control the fiat system so I am not surprised that they need to take all of those precautions if they still want to send or accept payments in their bank accounts, but those people can still take a step further, avoid using P2P platforms and try to connect directly to those that want to buy and sell bitcoin, and instead of using their bank accounts they can use cash, this is going to slow down their business even further but it is possible they will have to do that in order to stay afloat.

There is an increase in vendors who trade with physical cash in Indian platforms. They find it safer when compared to bank transfers. It is still not 100% safe, as the income tax authorities may be monitoring these P2P platforms as well. Talked to some of my friends yesterday. They were checking the possibility of traveling to the GCC nations with a tourist visa, and doing the cryptocurrency trade there.

[redsun114]

Moreover, RBI to launch their own crypto currency which will be centralised one. So what the heck is that? Why they don’t understand we don’t want centralisation in the first place and that’s why we are using the bitcoin. LOLZ

I don’t think all these countries trying to create cryptocurrency is ever going to work, the ones I have seen already were a total failure. Although I have seen the Chinese digital Yuan that was trending through out last year, but no one talks about it again, I wouldn’t be surprised if that one also turns out to be a total failure lol, that’s how it happens.

And then as for central banks that are banning Bitcoin and other cryptocurrencies, they are just making a mistake because for me I see it as a loss for them, since people will still continue to trade P2P, the only thing they are doing is to ban centralized exchanges and not really Bitcoin, because they can’t stop people from using Bitcoin.

[Twentyonepaylots]

So with the new budget 2021, RBI has put forth an agenda (one more time) to ban the crypto currency across India. They won’t be allowing to use the crypto either for corporates or individual level. All the banks will be warned soon with the following guidelines.

Why confused?

Statistically they have already published such guidelines back in 2018. After this market crashed a bit and major exchanger like Zebpay was closed.

With Musk putting and publishing his actions with bitcoin (to buy Tessa with bitcoin) Indian government looks completely distorted with their decisions.

A draft of these guidelines states all the above junks.

Moreover, RBI to launch their own crypto currency which will be centralised one. So what the heck is that? Why they don’t understand we don’t want centralisation in the first place and that’s why we are using the bitcoin. LOLZ

Reference: RBI to ban crypto currency use

Most likely at a crossroads between prioritizing the elite sector's needs and wants and the common people's necessities. They wouldn't be that 'confused' if it wasn't the case. Nonetheless if I were the one handling the RBI, I'd choose the betterment of my people rather than the 1% which can safely survive and hold on their own.

[Sithara007]

I don’t think all these countries trying to create cryptocurrency is ever going to work, the ones I have seen already were a total failure. Although I have seen the Chinese digital Yuan that was trending through out last year, but no one talks about it again, I wouldn’t be surprised if that one also turns out to be a total failure lol, that’s how it happens.

And then as for central banks that are banning Bitcoin and other cryptocurrencies, they are just making a mistake because for me I see it as a loss for them, since people will still continue to trade P2P, the only thing they are doing is to ban centralized exchanges and not really Bitcoin, because they can’t stop people from using Bitcoin.

CBDC coins can become successful if they are easy to use. So international merchants who were using fiat currency earlier (SWIFT transfers and all) may shift to using these coins, just because they are uncomplicated. But at the same time, it will be foolish to believe that fiat currency in any format will replace decentralized cryptocurrency. Coins such as BTC and ETH are there for a reason. And their biggest advantage is that they are decentralized. Once you make them centralized, all the advantage is lost.

[Webetcoins]

^^^ Migrating to European countries from India is not easy. It is going to be too expensive for the vast majority of the users. The best option they got right now is to travel to the GCC nations (such as UAE and Kuwait) on a temporary visa and sell their coins there (in most of the GCC nations, there are no taxes on profit from cryptocurrency). Other options include Thailand, Hong Kong and Russia.

I am not sure if this works, but there is one thing these Indian companies can do.

1- Find a legal country for operations and find a trusted person there and ask him to register the company in his/her country.
2- Keep his name for the ownership but operate from India.
3- Since you are only workers and the boss is non-Indian resident, that should solve the problems.

So basically the share in the profit can be discussed and accordingly you can sign contracts with the owner who remains only for the "name". I don't know if this is illegal but I am just thinking of the possibilities.

[South Park]

As I said governments control the fiat system so I am not surprised that they need to take all of those precautions if they still want to send or accept payments in their bank accounts, but those people can still take a step further, avoid using P2P platforms and try to connect directly to those that want to buy and sell bitcoin, and instead of using their bank accounts they can use cash, this is going to slow down their business even further but it is possible they will have to do that in order to stay afloat.

There is an increase in vendors who trade with physical cash in Indian platforms. They find it safer when compared to bank transfers. It is still not 100% safe, as the income tax authorities may be monitoring these P2P platforms as well. Talked to some of my friends yesterday. They were checking the possibility of traveling to the GCC nations with a tourist visa, and doing the cryptocurrency trade there.

This is a tendency that is going to keep growing whenever such restrictions are put in place, people are not going to stop doing something that is profitable and that does not harm anyone, using cash for their transactions confers them privacy but using those platforms or social media to contact their customers means that governments know where to look, I really think that people that are looking to exchange their bitcoin and other coins that way should eventually get out of those platforms in order to void detection by the authorities.

[Sithara007]

There is an increase in vendors who trade with physical cash in Indian platforms. They find it safer when compared to bank transfers. It is still not 100% safe, as the income tax authorities may be monitoring these P2P platforms as well. Talked to some of my friends yesterday. They were checking the possibility of traveling to the GCC nations with a tourist visa, and doing the cryptocurrency trade there.

This is a tendency that is going to keep growing whenever such restrictions are put in place, people are not going to stop doing something that is profitable and that does not harm anyone, using cash for their transactions confers them privacy but using those platforms or social media to contact their customers means that governments know where to look, I really think that people that are looking to exchange their bitcoin and other coins that way should eventually get out of those platforms in order to void detection by the authorities.

I agree that they are not completely safe. But the risk is not very high. There are 10 to 15 million cryptocurrency users in India and even earlier most of the users were dependent on these P2P platforms. Even previously the government had created issues with banking bans and all, so most of the users were not using the mainstream exchanges. For the government, it is not practical to track all these millions of people, although we can't discount that possibility completely.

[Gozie51]

The rate at which government is turning U with cryptocurrency regulations is allarming, probably they are afraid of how bitcoin is making moves and they don't want their citizens to get quick rich and if that's the case, government are actually surrounded by shallow mind.
The same thing has happened in my country, the government want all financial institutions not to aid deposits and withdrawal into crypto exchanges.
There is always an alternative to every problem, simply use P2P.

They are novice in the system of governance and are traditional. They don't understand the system and are terming it to be bubble.

You have some understanding that these decisions are fuds to my knowledge to pull price down. During the last ATH and the drop, many politicians bought and this is what may happen  this time but unfortunately , the price may stay up there for long.

The price of bitcoin is high and difficult for investment, everybody including government officials want to invest that is why you get critism.

[Vishnu.Reang]

I am from India and as per the ground reports it is not yet clear whether the government will go ahead with the blanket ban or not. They were initially planning to introduce the bill during the budget session, but that was postponed. Media outlets are reporting that the bill may be introduced during the monsoon session (4-5 months from now), but there is no clarity.

Irrespective of whether they are going ahead with this bill or not, cryptocurrency investors have already suffered losses. When the news first came out, Bitcoin rally was about to start. A lot of Indian investors sold their coins and thereby suffered losses. Now their losses are not going to be reimbursed, even if the government announces that they will not implement the ban on cryptocurrency.