News reaching Ethereum World News, indicate that Ripple (XRP) Company Executives, are confident that the currently standing cryptocurrency ban by the Reserve Bank of India (RBI) will be overturned.
The Times of India reported that the company is betting on Basel Norms and the RBIs own panel report on digital currencies. The latter could provide a new framework that could result in the said overturning of the ban. This is after the RBI was found out to have not carried out ample research before issuing the order in the country.
With respect to Ripple betting on the Basel Norms to also revert the ban, these are the standardized regulations for central banks around the globe. They are refereed to as the Basel Norms for Basel, in Switzerland, is the headquarters of the Bureau of International Settlements (BIS). India’s Central Bank (RBI) has accepted the Basel Norms for banking, in its operations and practices.
Dilip Rao, who is Ripple’s Global Head of Infrastructure Innovation said that unlike Bitcoin and other cryptocurrencies, XRP is designed to enable remittances of fiat currencies and not to replace them. With RippleNet being continually accepted amongst several global central banks, Mr. Rao is quoted as saying that:
There is a great regulatory comfort with Ripple Net — particularly in the light of the Bank for International Settlements’ policy requiring central banks to have a backup for payment systems having non-similar technology.
He added that countries already have concerns that traditional cross border systems are centralized and can be turned off by the turn of a switch. The Ripple ledger, being decentralized, will still continue to function when one node is switched off. It will also provide the backup payment system required as described by Mr. Rao in his statement above. By being on the blockchain, the Ripple ledger is totally different from traditional payment systems.
In conclusion, the initial fact that the Reserve Bank of India did not carry out their own research before issuing a ban on cryptocurrencies, proves that the decision is reversible on the basis of just this fact. Also to add, is the aforementioned Basel Norms as well as RBI’s own panel review of the decision: both of which will make the ban reversal.