This screenshot has been widely circulated over the past couple of days and some of you have reached out to me regarding the same. I'm going to clarify this as per my understanding of the information that is available today. Please feel free to do your own due diligence on this matter.
The committee that was built to form a legal framework around cryptocurrencies in India and legalise it might be actually working to ban it. This post is not to create FUD but to provide some insight into the matter.
- Use of private cryptocurrencies refer to cryptocurrencies that are not backed by the government. This doesn't specifically refer to privacy tokens but all kinds of cryptos such as BTC or even STEEM.
- "Use" here can refer to possession, trading as well as using cryptocurrencies as a mode of payment.
- Legal framework can be brought in to give power to the banks to give purpose to transactions which will allow them to track trades done via p2p channels. Currently this isn't possible as there is no law that allows banks to "decide themselves" why person A sent money to person B and what was bought or sold in exchange for transfer of these funds in question.
- Possibility that the RBI/government may launch their own cryptocurrency remains.
Other set of variables that I'm considering.
- Ban on use cases might be legally limited to cryptocurrencies being used as 'Legal tender.' As we know already, use of any currency (fiat or digital) other than INR is not legal in India.
- The legal framework might ban cryptos as legal tender and make it illegal enforceable by law.
- Trading and possession might be legalised or allowed. However, it's totally unclear at this point.
- Are we going to be forced to disclose our cryptocurrency holdings? IT-dept last year sent notices to 500 HNWI's demanding this information. However, if a legal framework might force our hand to disclose our cryptocurrency holdings.
- Blockchain technology is referred to as distributed ledger technology. However, it's one and the same. This is probably because they want to promote blockchain startups without tokenisation in India and somehow calling it differently people might think blockchain is different to distributed ledger tech. Some reporters in our esteemed media are stupid so they might take the bite!
- RBI is constantly at loggerheads with the government of India. So it's hard to say which way this is going to go.
This post is not to create FUD but to give some clarity on the press release from the government of India. There is no need to panic right now. Let's wait and watch. You can find the official press release by FSDC here!
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If they are using word private cryptocurrency...does that mean they have any plan for introducing governmental cryptocurrency ???
Pretty bad state where these notices create lot of confusion .., till now i never comes across "private" in reference to crypto currency..but strange the government it using it publically....
Hope to see some good days ahead in crypto world
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Yes. The possibility that the (RBI)/Indian government may launch its own cryptocurrency is still a possibility.
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They know they are slowly loosing power. Rampant corruption and greed from within the government there has been holding India back from progress. Refusing to use the RBI crypto is the first step you all should take. They want to keep everyone on their leash. Soon they will have 0 control over currency and they'll have to ban the internet at this rate. Steem is spreading like the perfect crypto virus and its only going to get larger when SMTs come. Its important we keep spreading the knowledge and power of crypto into as many hands as possible out there. There are talks that smartphone use in India will surpass 700 million by 2020. This will get harder and harder to control and regulate. These crooks in charge out there will do anything to stay in the position their in. If that means starving the poor and taking your wealth they will do it. The current politicians in India are nothing but heartless puppets following the interests of others and collecting government money for themselves. Enough is enough. Its time to weed out the evil in India and give the power back to the people.
thanks sir
I love India and its spiritual strength but in these days all is corrupt in the goberments i feel so bad about that. In my country Argentina is the same.
good luck bro
If government launches a "crypto currency" it will be tied to the FIAT. So we will no more able to call it as virtual or crypto currency but it will be more like "digital money". Or in other words, its going to be similar to PayTM or other PPI wallets. With players like Jio have PPI licenses and government has spend large amounts to establish IMPS infrastructure based on which UPI runs, I think, India already has the FASTEST digital money system and also the fastest cheque clearance system. So, if RBI launching a crypto currency means, something that is built on top of say Ripple or Stellar Lumen, it will be just another waste of tax payer money. The existing IMPS network itself is not used properly and IMHO there is no use of RBI launching any virtual/crypto/blockchain based payment system.
That being said, I am quite sure that they will launch something like virtual/crypto/blockchain as its going to be completely useless and our number one priority is to do wrong things in the fastest way. So I believe and expect more waste of tax payer money just like Aadhar project.
NIce to hear that @firepower!
Remember jio had announced that it will release it's own crypto ? This one is gonna be pre approved by the government. Since modi ass kisses ambani in terms of business. Good luck India!
Sooner or later this is going to happen. Frankly speaking, we all know how currencies make government powerful and that circulation of non governed currencies will affect their power centralisation.
I am pretty sure they'll ban it at some point. But guess what, this is no reason to FUD. Because anyone who entered crypto space after a good research and has an understanding of core concepts would have all known these possibilities and must have been well prepared for these cases.
Don't know about the others but I saw it coming. I don't hold much in cryptos but whatever I have, I have been holding it and will hold it as always. I'd be sad if my value goes down or if I lose money but I'd be more sad about the lack of faith shown by people. Afterall at the end of the day it's the people who created it, to empower people and only people should decide it's fate.
And I firmly believe that:
If the community can't sustain it, it's not worth it!
It is great how you keep on top of what is happening and share it with others.
Thanks for the info. If the end product of these hearings is that crypto is not going to be a means of investment, payment for goods, or totally banned to even hold, how does the gvt. deal with those already invested. Even more worrisome for me, if I resided in India, would be what the hell do I do now .
@firepower, Yes, we should not Panic because when something is coming into the world which can give power to masses, will going to face some tough times at the Point Of Entrance. And we all know that, now in world many countries are coming forward and taking positive steps towards the Cryptocurrencies. So in my opinion already we are watching some good vibes when we talk in the sense of Global. So when countries are coming forward towards particular Technology then in my opinion it will going to inspire other countries too. Stay blessed. 🙂
sir, thanks for sharing update.
Not surprised, India has been working hard to clamp down on their national currency situation, first with the banning of certain bills.
O my God. This will not be a good news for Cryptocurrency tlovers in the country. let us just hope it didn't happen. Thanks for sharing this with us. Without you. I may not have been awarded of this
You accidentally pasted the content twice I think. :P
Yes. Was editing from Partiko and accidently posted twice. Fixed it.
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Even Steem allows us to edit posts, but not Twitter :(
I really hope India dosent go ahead with this plan. It's going create uncertainty for cryptocurrencies in other developing countries.
Yea right bro
Now i am literally feeling that this time it really going to work.
Hope the delay goes on and on and on.
That's unfortunate @firepower. But I still hope that the time will come up with the sweet answer that we want to hear. Patience ahead!
👍
Hello @firepower,
As we can see in the highlighted part they have mentioned a special word that is 'Private Cryptocurrency' such as Monero, Verge etc. I don't think there will be any impact if these coin gonna be banned in the future.
I really appreciate your effort & Thank You for sharing this news with us :-)
What i simply believe is no matter what is going to happen i am going to hold my coins and government should think twice as they are not abel to ban porn completely so how can they think that they will be successful in there course to ban crypto as there will always be loop holes lets see even i want the things should be straight forward but if we will be forced then loop holes will be digged...
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So you planning to move elsewhere anytime soon?
India is an outpost and beta test ground for the West
PLEASE TELL ME THE WAY TO WITHDRAW CRYPTOCURRENCY IN MY INDIAN BANK PAYPAL OR ANY INDIAN CURRENCY
In UK lately there is more mentions of cryptos in the daily press and daily business free paper CITY A.M. started to publish weeks ago 2 pages section every tuesday titled ' Crypto A.M.' - with most articles emphasizing on DLT and things like Stellar. Something's cooking.
India trying to control cryptocurrency, at least within their country. anything which are not controlled by the government is consider illegal.
Is this like a check mate for us ?
We are working here to make our career in this wonderful, new and unique field and suddenly govt says it will be banned! How cruel is that! Cryptocurrencies are legal in both developed and developing countries, it could be a huge opportunity for our country to dominate this field but its very sad after watching this news. Dont knoe what to do @firepower, leave it or stay with it. I m very much confused.
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