The Indian government is worried that cryptocurrencies may destabilise the rupee

[bbc.reporter]

I speculate that the Indian government might not be afraid that bitcoin may destabilize the rupee. It is the banks, which are the institutions that control the government, who might be afraid of bitcoin in competition versus their other secret operations. Money laundering.

https://en.m.wikipedia.org/wiki/Money_laundering#Notable_cases



From money laundering to terror financing, the risks associated with cryptocurrencies are well known. But a high-level panel tasked with drafting rules for India’s virtual currency ecosystem is now obsessed with its impact on a less-explored area.

The committee, led by the top bureaucrat Subhash Chandra Garg is believed to be in a tangle over the impact that digital coins will have on the Indian rupee if they are allowed for making payments.

“If bitcoin and other digital currencies are going to be allowed to be used for payments then whether it will end up destabilising the fiat currency is a major concern for them (the Garg panel),” said one of the representatives from the cryptocurrency ecosystem who recently met the ministers, requesting anonymity. “The overall impact on the financial ecosystem that it is likely to have is still unclear and it has been a challenge to convince them on this particular point."

Read in full https://qz.com/india/1539944/india-fears-that-bitcoin-other-cryptocurrencies-may-hurt-rupee/

[romero121]

Recently Indian government came up with the plans of regulating cryptocurrencies within the country. As a part lawyers were asked to frame regulatory compliance and asked for describing the same. Now once again a dilemma has got initiated. This might be due to the view bitcoin being used on money laundering, darkweb needs and other on other illegal platforms. Possibly we can expect acceptance, because if it is to be banned they could have never taken into consideration for regulating as well no teams could've been assigned for the work.

[dothebeats]

The ones who are scared of change are the ones who are benefiting from the current system a lot[/a]. Not that I'm telling that the Indian officials are engaged into money laundering and such activities, but seeing other countries doing good in terms of welcoming cryptocurrencies, I can see no major problem in making these cryptocurrencies legal at all. If anything, they can prevent money laundering and fraud if they have the right regulatory framework to work with, but they are so scared of diving deeper causing them even more worries and anxieties because they aren't ready to make a definite move.

[denzkilim]

The ones who are scared of change are the ones who are benefiting from the current system a lot[/a]. Not that I'm telling that the Indian officials are engaged into money laundering and such activities, but seeing other countries doing good in terms of welcoming cryptocurrencies, I can see no major problem in making these cryptocurrencies legal at all. If anything, they can prevent money laundering and fraud if they have the right regulatory framework to work with, but they are so scared of diving deeper causing them even more worries and anxieties because they aren't ready to make a definite move.

Definitely, you are correct there bro! But I guess there are connections about corruption and most of the governments in the world fear about that especially those corrupt government that gets a lot of benefit with the system we are used to. Let's make Japan an example for a least corrupt country and they are accepting Crypto Currencies and legalizing it because their governments are not that corrupt like other governments and they are not afraid of the blockchain technology that can be used to make a whole government system corruption free. This is based in my opinion and my own point of view.

[mirakal]

I speculate that the Indian government might not be afraid that bitcoin may destabilize the rupee. It is the banks, which are the institutions that control the government, who might be afraid of bitcoin in competition versus their other secret operations. Money laundering.

There's something wrong here, it should be the other way, banks are controlled by the government as government has agency like Central Bank
that governs all banks (private and government). If it's the bank that are controlling the government this this is a corrupt country and the more people needs to stay away with the bankers adopt crypto to experience transparency.

[bbc.reporter]

The ones who are scared of change are the ones who are benefiting from the current system a lot[/a]. Not that I'm telling that the Indian officials are engaged into money laundering and such activities, but seeing other countries doing good in terms of welcoming cryptocurrencies, I can see no major problem in making these cryptocurrencies legal at all. If anything, they can prevent money laundering and fraud if they have the right regulatory framework to work with, but they are so scared of diving deeper causing them even more worries and anxieties because they aren't ready to make a definite move.

It is ok to say it. The Indian people themselves know how corrupt their own government officials are. Every person in the cryptospace knows.

[Indrawan77]

Its a common thing that the bankers are worried about crypto, with the balance usage crypto could increase the economic of a country by providing more job opportunity and new business income, but if its out of balance then it could be increasing the inflation rate, and decentralised technology does has it disadvantages, there will be bunch of people used it for bad things, but fiat is also used for the same thing, so its not crypto that need to be fixed but the person that used it and to prevent bigger problem the government could make regulation, but banning is not the answer because it's a useful technology

[r1s2g3]

It is highly unlikely for present Indian government will do anything that give any legality to the bitcoin. The  government is currently more worried about the black money and I guess there might be internal fear in government might be black money be converted to Bitcoin.

[Kakmakr]

The thing is, India are known for corruption in their government and they use the current Banking system and cash as a tool to hide their corruption. A technology like Bitcoin with a transparent Blockchain will make it more difficult for them to hide corruption and they obviously know that.

They are also in control of the money supply of their local reserve currency, so manipulation of the value of the reserve currency will be undermined if Bitcoin is allowed to flourish.  

It has nothing to do with terrorist funding and money laundering, that is just smoke and mirrors.  

[jseverson]

Well I mean, it's a legitimate concern. Managing economies is hard enough as is, and adding an uncontrollable variable on top of that surely wouldn't make things any easier. Either way, I personally don't think crypto can destabilize economies as it currently is. Their worries are several decades too early. I just don't know if they're purposely thinking way ahead or are ignorant of the topic at hand lol.

[Bttzed03]

I remember reading news few months ago about India and its booming economy. I believe the government was able to lift their economy without the involvement of cryptocurrencies. Whatever the real motive behind blocking cryptos, let them be. They will realized their mistake sooner or later.

[Stedsm]

The thing is, India are known for corruption in their government and they use the current Banking system and cash as a tool to hide their corruption. A technology like Bitcoin with a transparent Blockchain will make it more difficult for them to hide corruption and they obviously know that.

I'm from India as well, I'm not offended by your words but let me remind you that most of the Govs in each country are there to fill their own pockets. Indian Gov is not just using cash and Banks here, but they are putting their "black money" outside the country (mostly in "SWISS" Banks) in order to remain safe if a raid gets conducted at their premises and they are even using crypto themselves for the same money-hiding (or I should say money-laundering) purpose. It's not hidden that most of the politicians (whether corrupt or not) are involved in cryptocurrency investments themselves, or just think as to what is stopping them from banning crypto here? They're now playing positive and coming up with some possible regulations (but fuck regulations, I'm loving Bitcoin the way it is now).

They are also in control of the money supply of their local reserve currency, so manipulation of the value of the reserve currency will be undermined if Bitcoin is allowed to flourish.  

How exactly can that be the scenario?
Did US lose after allowing its citizens to use BTC? Nope, it's gaining only in its value. I don't understand what makes them think that use of Bitcoins would either destabilize or narrow down the value of the major (reserve) currency when, if used properly and gained more in proportion to other countries, can only let the local currency shine. I don't think Bitcoin is too big yet to make such disastrous harms to our local reserve currency and it really needs an extremely huge market cap for that to happen.

It has nothing to do with terrorist funding and money laundering, that is just smoke and mirrors.  

They're just adding more stuff like those heavyweight words in order to scare their people to stop using it or show up with all the transactions, pay taxes and be their puppet by showing all the info and finances we do, or else get fucked by them by being sent into jail.

@OP,
For your kind information, the image you used has nothing to do with crypto as he was Datta Phuge (Gold Man of India) who (lived in &) was killed in Pune for his love and devotion towards Gold.

[KingScorpio]

thats correct, because the post ghandi banking cartel will lose their power.

[Herbert2020]

The ones who are scared of change are the ones who are benefiting from the current system a lot[/a]. Not that I'm telling that the Indian officials are engaged into money laundering and such activities, but seeing other countries doing good in terms of welcoming cryptocurrencies, I can see no major problem in making these cryptocurrencies legal at all. If anything, they can prevent money laundering and fraud if they have the right regulatory framework to work with, but they are so scared of diving deeper causing them even more worries and anxieties because they aren't ready to make a definite move.

It is ok to say it. The Indian people themselves know how corrupt their own government officials are. Every person in the cryptospace knows.

that is exactly why Indians have been buying bitcoin nonstop for over 2 years now, even with all the roadblocks that their corrupted banks have been placing in front of them to try and prevent their people from buying bitcoin. if you check out last prices in India you can see that at some point during 2017 they were buying bitcoin about 30-40% above the global (USD) market value.

[Johnzky]

 Government of India asked for lawyers stand about cryptocurrency in in their country ,so I think this is enough reason for the people of crypto to hold as positive reaction

Every country’s have their own looks towards crypto entering each economy but mostly have this feeling of worrying for their currencies so we cannot take this from them

But people has no choice but to it and trust every decisions may the government made .

We asian people also has same problem so lets hope and pray this will be resolved

[expertofexperts]

Well even if Indian government regularize it, least people would be interested. The things are straight, no one wants to use currency which will be regulated by government,. We use only bcoz its untraced. Other than that, there is no use of using it. If its global payment kind of thing, we can use Dollars or pound for it.

[kelz1]

India is very much a cash society, when they banned their top denominator note there were queues to the bank because they kept their savings at home. Bitcoin givens them financial freedom and the government knows it will destroy their untrusted rupee

[Pursuer]

every government in the whole world has concerns about bitcoin, I wouldn't call it "worried" but it is a concern for sure. it starts from small things such as the fact that many people are being blinded during the rallies and lose a lot of money by buying bitcoin in the bubble and panic sell during the drop or get sucked in the altcoin pump and dumps. and it goes as far as illegal activities that has been happening over in the dark net,... but that is nothing new. different governments are reacting about this "concern" differently though. we have seen those that choose to regulate bitcoin and eliminate the scammers by letting people freely be educated about bitcoin and use legitimate places for their trades. and some try banning it and end up letting more scams happen as people go for the decentralized way of trading bitcoin and get scammed more.

in the end this is temporary, it may last a couple of years but eventually we will see a uniform regulation instead of "fear" of bitcoin.

[andieoke]

Yes that is true, India is afraid that the presence of Bitcoin and Cryptocurrency will disrupt the stability of the rupee currency. As said by their finance minister, for this reason Cryptocurrency is banned in India. and the ban on Cryptocurrency has a major impact on the development of Cryptocurrency in the country. Many Indians are disappointed with the Indian government's decision.

[Harlot]

The minute I see news that their government is planning to have  their own cryptocurrency or two is the moment I realize that these regulations that the RBI is pushing is only for their citizens to favor their own locally created crypto which I think is really unconstitutional, first of all they will say what cryptocurrencies are legal or not in their country so by this part alone we now see that the RBI is trying to eliminate competition against their upcoming ICO, this is really not about the Indian Rupee but it is about their greed in the system.