According to an RTI (Right To Information) filed against RBI has proved today that the central bank of India has unilaterally banned banking services to cryptocurrency exchanges in India in a bid to thwart the growth of this market.
Twitter user @Blockchainlaw91 shared a copy of the RTI filed today. It's almost shocking to see the responses to the queries and it's a must read to understand how some of our monetary policies are (poorly) conceived.
As per some of the points in the document it is clear that the RBI has done no real research that necessitates an outright ban. There was no internal committee formed with a panel of experts leading charge of the research needed to understand these cryptocurrencies and blockchain technology.
RBI has no insight on the entities under their regulation. This implies they have no complete data on how many banks or payment systems are regulated by them. They don't have any insight on entities regulated by them providing services to cryptocurrency oriented businesses.
They certainly don't seem to have any knowledge of blockchain or cryptocurrencies at all but they have the power to ban services to exchanges and levy penalties on banks if they don't adhere to the mandate set by RBI.
By the 6th of July all Indian cryptocurrency exchanges will stop deposits and withdrawals and only crypto-to-crypto trading will be allowed on all these platforms.
If you are an Indian citizen invested in blockchain technology and cryptocurrencies you should be angry at the incompetence of the people in-charge of our monetary policies. Please take your time to read the document!
Right to Information (RTI) is an Act of the Parliament of India to provide for setting out the practical regime of the right to information for citizens and replaces the erstwhile Freedom of information Act, 2002. Under the provisions of the Act, any citizen of India may request information from a "public authority" (a body of Government or "instrumentality of State") which is required to reply expeditiously or within thirty days. The Act also requires every public authority to computerise their records for wide dissemination and to proactively certain categories of information so that the citizens need minimum recourse to request for information formally. - Wikipedia
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
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It looks like some 3rd grade PA has replied to those queries filed in this RTI who has no knowledge on the subject whatsoever. They think that this is some kind of joke and no one will raise voice against their decision! The market is already going down everyday and 6th July is going to add onto the fire. This makes me very angry.
@firepower.
My man crush monday forever!
A lot of countries are clueless about crypto and blockchain and that clueless is prompting them to make poor decisions, they should learn from Korea or Japan for example
I hope there will be some other ways pop up with which we can buy crypto after 6th july. Right now i am investing as much as i can in this month only.
Foolish decision of
Fool management
@ RBI
Sometimes i think monetary polices and regulations are for the general growth and developement of the value sustainability of a countrys currency.Velocity of money matters alot,to avoid inflations and deflations.
Incorporating crytocurrencies require more awareness. Goverment needs to ascertain loopholes, in the economy.
That is why i think they need more education about cryptocoins,to bring equillibrum with the physical cash that is ubiquitos.. In international exchange.
I dream of a world where international trade payments are made with cryptocurrencies.
We just have to be patient.
Monetary policies especially in third world countries keep poor people poor. I don't think we should be patient, I think we need to take action. Cryptos offer a potential to create a more abundant society but the comfort of the rich lies in abundant supply of poor, as governments are always in rich people's pocket we should be careful to have such blind faith in them.
How is it that a country like Iceland which has a population of about 300,000 or a country like Norway with a population of about 3 million have effective governments where Canada of about 30 million population is less so, and the USA of 300 million is really out of control and India with over twice that amount is even worse (I really don't know this aside from watching Bollywood movies-where ghosts can run in an election). Is it a function of centralizing too much power into the hands of too few, or is it possible there is an optimum population size or even is it possible that in smaller countries your political leaders just live down the street.
It might be more democratic that for every piece of legislation, a random sample of 100 people needs to be drawn from a society and each position be put before them and they make the vote. This would be similar to a jury selection where each person would be sequestered until the vote was passed. This would be horribly expensive but that might be the price of an equitable system.
Hey David, sorry for the long silence. I have just been tied up with work and was away from steemit :)
I think there are countries like Germany with much bigger population than South Africa and far more democratic. I am not sure what the secret is but there is something not write. We will hopefully find the answers and make a better world!
One of the larger contributors to unrest is poverty. Poverty knocks of about 14 percent of IQ ... the same amount as missing an entire night's sleep. I am unsure when you were last on ... did you see your site on steemhost.com?
https://www.steemhost.com/@lucygarrod
Yes, it is very cool! I just visited it now :)
Thank you so much for Steemhost!
Hi Lucy are you in India? I hope everything is going well with your family. We have a programmer who lives in Gujarat and the weather is 34C. We have been lucky where I am in Canada at most 32C.
I hope you liked the background ... I don't know where that is in Malta compared to where you live. Are you permanently in India (should I change the background to reflect the area you are in) or shall I keep it the same.
One of the aspects of steemhost, is that we can turn on a contributor page. I includes the streams from people you follow, are friends, or write in a specific area that you are in. Your commentary on the legal aspects of cryptocurrencies is a deviation from your regular posts but might be of interest to some people. Perhaps if there are other people who post on legal issues, they could be added as contributors. If you are interested, just send me the steem ids and I will add them for you.
An example of a contributors page is this by Jose: Mis Amigos
https://www.steemhost.com/steem/Contributor.aspx?Host=@eljose27
I recognise that you have duties elsewhere ... business and family but it is very nice to see you posting again...
Visit Me on Steemhost.com/@dwarrilow2002
Yeah all of this crypto stuff is still really new to us
I wonder if they can be criminally prosecuted
@firepower resteemed as I have followers that need to be aware of this; as we all do.
maburro que es maburro y sabe de cryptos jeeeee esto es una gran ayuda para muchos paises
So sad and this is how Power wields it's ugly head. So shameful. I can see why so many people become anti-gov't and anti-bank.
Thanks for sharing this IMPT info. @firepower
It's sad that when crytocurrency and blockchain technology is the next big thing in the world, our Indian central bank has no clue about it and just decided to ban the banking channels. Really want to know which idiots came out with the idea of the ban!
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India has great developers working right now in many blockchain projects but the amanagerial staff from government is unable to understand the crypto currencies and it's regulations ...
Bro yeah bat hui: andha raja or kaani sarkar. They are firing without Target. Arjun banne ki soch rahe hai. Sach main BJP sirf rang hi kiya hai. Worst government. Kuch bhi karte hai. Inko sirf apne profit sey matlb hai.
Sir it's a very funny situation for a regulatory body which is very crucial for our financial system, making it's a joke of the day.
They didn't enquires the pros and cons of the vc usage and spread FUD and creates panic for every single person associated with cryptocurrencies space.
Now they come with a foolish like comment proving themselves a bunch of fools.
Feeling themselves that if we ban this opportunity maybe we lose the phenomenon of taxes, and so many opportunities as well.