Bitcoins not to be used for payments and settlements for now: RBI

[Dudeperfect]

The Reserve Bank of India (RBI) today reiterated its stand on cryptocurencies saying the bitcoins will not be used for making payments and settlements for now.

Sudarshan Sen, RBI Executive Director, had said, "Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely."

* Bitcoins not to be used for payments and settlements for now: RBI.

This indicates that Indian government is working to bring its own cryptocurrency. The name might be Laxmi (the goddess of wealth).

[intelligent.investor]

A lot of things are going on nowadays relating to cryptocurrencies.....Hope and Uncertainty both at once....Volatility at its peak

[nikjain422]

According to me right now they are thinking of talking on replacing bitcoin,but this is India it is quiet surreal to take any step immediately here and until they come up with some solution either government will change or governor.

[Iranus]

The main problem for settlements is exchanging.  They're obviously wanting to receive the money as fiat, which means that they would have to find a way to convert large amounts of fiat money into BTC and then back into fiat on the other end, which could be expensive and tiresome.

Volatility could also take quite a chunk into their fiat, especially since BTC has been very volatile over the last few weeks or so.

Bitcoin transactions for settlement are largely useful for people who are genuinely interested in continuing to hold BTC.  For example, this transaction of around 200,000 BTC comes to mind.

[iluvpie60]

The Reserve Bank of India (RBI) today reiterated its stand on cryptocurencies saying the bitcoins will not be used for making payments and settlements for now.

Sudarshan Sen, RBI Executive Director, had said, "Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely."

* Bitcoins not to be used for payments and settlements for now: RBI.

This indicates that Indian government is working to bring its own cryptocurrency. The name might be Laxmi (the goddess of wealth).

Any cryptocurrency a government comes up with should be treated like tethers. Tether is based on being worth 1 USD and only goes up or down by 1 or 2% at any given time(which is still more than actual fiat currency does day to day). It is more stable, but should be understood that there is no benefit in buying a government back crypto because it isn't going to go up in price.

The only reason it would make sense to use it is if there is a huge incentive to have less fees, but the government is likely just going to use it to take control of the money supply via issuing cryptos that are not mined by anything to keep it secure. Seems pointless.

[Dudeperfect]

The Reserve Bank of India (RBI) today reiterated its stand on cryptocurencies saying the bitcoins will not be used for making payments and settlements for now.

Sudarshan Sen, RBI Executive Director, had said, "Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely."

* Bitcoins not to be used for payments and settlements for now: RBI.

This indicates that Indian government is working to bring its own cryptocurrency. The name might be Laxmi (the goddess of wealth).

Any cryptocurrency a government comes up with should be treated like tethers. Tether is based on being worth 1 USD and only goes up or down by 1 or 2% at any given time(which is still more than actual fiat currency does day to day). It is more stable, but should be understood that there is no benefit in buying a government back crypto because it isn't going to go up in price.

The only reason it would make sense to use it is if there is a huge incentive to have less fees, but the government is likely just going to use it to take control of the money supply via issuing cryptos that are not mined by anything to keep it secure. Seems pointless.

Well, Banks love stability and if the government is launching its own blockchain based currency then no doubt that banks will use it for transactions settlement. It is clear that traditional system is costly for the banks and if Bitcoin or any other blockchain based currency is providing more benefits then it will be a trouble for the banks to survive in the market and hence they will definitely try to transform their system over the time. Yes, I agree that it there won't be any speculative opportunities in government-backed cryptocurrency.

[n0ne]

Heard a news that Indian government is making a wide research about the cryptocurrencies as well the goodness it can provide through the technology. Now such an initiation of its own cryptocurrency doesn't gonna get a big support as people were much against the government from the demonetization what they did in the name of digital growth.

[jseverson]

I'm, glad they're keeping the door open, at least. I don't particularly see this as bad news because they're obviously not against cryptocurrency as a whole. Heck, they even said that cryptocurrencies as a technology will remain. It's weird how they say they view Bitcoin as a private cryptocurrency though, when it's basically as public as public can be. Their own fiat cryptocurrency, on the other hand, I would consider private.

It also bothers me how governments keep saying that Bitcoins are susceptible to misuse when fiat suffers from the same issue. I guess it's just the most convenient excuse.

[soham]

I don't think that Indian government has the infrastructure to bring its own virtual currency in the market. It will cause a huge dilemma and worsen the financial status of India. The country is already facing a major economical roadblock after the de-monetization on last November, so I don't think they will risk for any such things.

However, it is possible for the Indian government to provide a framework to the bitcoin users in the country by proper reporting of their funds and tax on it. I believe we won't have any issue in paying the taxes if we get the legal status in return. Lets just wait for some good news.

[AngelDeveloper]

The "for now" really is the great news here, if that's really how they formulated the statement. If China would have ban ICO's or exchanges "for now" in an official manner, that would have been positive news.

[fanbeila]

Well that news would be a little bit relief for bitcoin users in india who heard before two weeks that india may ban bitcoin soon.Even though,the government has not yet legalized bitcoin,still that's a good news for indians.

Indian government seems to struggle in taking a clear decision about bitcoin.The reason may be its demonitization plan and huge GST taxes laid has brought lots of criticism to the government from all over the country.Now,it is not in a stage to take a bold move.That's the reason for its delay in either legalizing bitcoin or totally banning it.

[jtipt]

Everyone is trying to get into the Cryptocurrency game. But I don't get why everyone wants to make its own Cryptocurrency, whether it is an country like Russia and now India or a company like Amazon everyone just wants to make their new crypto. Why don't they get it that if they support the existing crypto it would be better for the Cryptocurrencies.

[Willitivity]

Right now Bitcoin and other Cryptocurrencies in general are facing so many regulations and a lot of modifications is ongoing.
And from the news it shows ia temporary restrictions, with time there will be a reshape.