The termination of using cryptocurrencies as a form of payment could be a plan being drafted by the Reserve bank of India [RSI] throughout the country. However, in contrary to the officials movement on that aspect, there is showcased support towards the technology behind virtual currencies – blockchain.
At a conference held in Mumbai, India on Nov. 6, 2017, RBI executive director, S Ganesh Kumar, has hinted that the digital currencies such as Bitcoin and Ethereum will not be allowed to be legally used across the country.
“Our current position on Bitcoins is that we will not be using it for any payments and settlements…though the technology underlying cryptocurrencies will not end.”
Even with the rejection from SBI targeting cryptocurrencies, the bank is approaching with great understanding the potential of blockchain tech as Kumar stated keeping in minds that the revolutionary networks could change the financial sector.
As a proof of Blockchain’s great promise, several banks in India such as ICICI Bank, Kotak Mahindra Bank and Axis Bank are already using Blockchain in such applications as overseas transactions and international remittances.
The cryptocurrency market in India accounts for just a very small portion of the country’s financial sector. Digital currencies are mainly used as an investment option. The leading virtual currency Bitcoin is accepted as a form of payment at only a few restaurants, and several cryptocurrency exchanges allow users to use the digital currencies as payments for books or movie tickets.
Bitcoin exchange Zebpay cofounder Sandeep Goenka – stated that there will be movements and developments having attempts to educate the Gov about cryptocurrencies.
“We will do our best to continue with our efforts to educate the government about cryptocurrencies. It can be useful for India by turning the country into a fintech hub, to increase financial inclusion, and there are several other benefits of it.”