Is China launching its own crypto currency?
The remarks signal the People’s Bank of China is inching toward formally introducing a digital currency of its own after five years of research. The upcoming digital Yuan will be “tokenized” money. But the similarity ends there. The crypto Yuan, will be fully backed by the central bank of the world’s second-largest economy, drawing its value from the Chinese state’s ability to impose taxes in perpetuity. Other national authorities are bound to embrace this powerful idea.
The consensus is that the token will be a private blockchain, a peer-to-peer network for sharing information and validating transactions, with the People’s Bank of China in control of who gets to participate. To begin with, the currency will be supplied via the banking system and replace some part of physical cash.
India’s Crypto Bulls Roadshow
The Indian Crypto Bulls Roadshow is non-profit initiative that aspires to educate Indian residents as to the emerging blockchain and cryptocurrency sectors .Many government organizations such as law enforcement(police) and municipal corporations are also joining this drive. The main aim of this program is not just to educate the Indian citizens about real blockchain technology but also to protect individuals from crypto scams. Initially the roadshow was stopping in 15 cities but after the Supreme Court verdict 7 more cities are incorporated. Prior to the actual roadshow, there will be a chain of meetups with the local governments, large enterprises and sessions with 500 plus startups.
How to get involved?
Crypto projects, influencers, event organizers, traders, investors from all over the map are invited to participate in the roadshow. There is no fee unlike other events in India for participation.
As part of this event there will be online voting to pick the best exchange, best blockchain project and Indian influencer.
India lifts ban on Crypto Currency trading
The supreme court on Wednesday,26th March,2018 abrogated RBI’s April 2018 order obtruding a ban on financial enterprises or individuals in India from peddling in cryptocurrency.
This adjudication would allow establishments in the sector to make use of the banking platform to trade and transact in cryptocurrency. The supreme court’s conclusion came after hearing several appeals challenging RBI’s order banning financial firms from dealing in virtual currency.
The internet and mobile association of India(IAMAI), an industry body representing cryptocurrency startups questioned RBI circular, arguing that it was an inappropriate respnose by the regulatory bank of India. Bench of justices comprising RF Nairman, Aniruddha Bose and V Ramasubramanian ruled in favour of IAMAI.
Why RBI banned trading in cryptocurrency?
The Reserve Bank of India directed all enterprises regulated by it to not to deal in cryptocurrency or provide services for facilitating any person in dealing or settling those.Regulated entities already providing services were told to exit the relationship within 3 months.
RBI banned cryptocurrency to protect the interest of investors. Crypto currency unlike other currenices are buildings without a base or foundation. No body is responsible for its value. Indians faced a total loss of around Rs.2500 crores by investing in crypto as the bitcoin price in India kept on fluctuating.Hence, RBI repeatedly cautioned investors from buying bitcoin saying it was not a recognised currency in India.
The RBI ban applied only to the use of banking channels for transactions in cryptocurrency while individuals continued to trade in cryptocurrency even after the ban.
Bitcoin price in India
Bitcoin a popular cryptocurrency, which accounts for round about two-thirds of the market capitalisation of cryptocurrencies zoomed from a few cents since its initation in 2009 to about USD 14,000 in 2017, a massive increase in price matched by no other asset class.
Crypto companies rush to secure market share in IndiaWithin 24 hours of the SC verdict, local exchange Unocoin, WazirX, and Conidcx had resumed fiat deposit services.Crypto currency companies are expected to resuscitate plans to invest and diversify their business in India.
ZPX- a Singapore based crypto firm will consider boosting their operations in India similarly WazirX- a crypto exchange firm will start investing in India.Hash Cash consultants also announced it would invest $10 million into the crypto sector during 2020.Investors also say peer to peer(P2P) companies will see inflow of capital similar to what has been happening globally.
In line with the research firm Crebaco Global, India’s blockchain and crypto industries have a potential market size of over $12.9 billion with the possibility of creating 20,000 jobs. The bitcoin price in India rose up so dramatically mainly because of the following reasons:
- There were rumours that amazon and other online websites will allow bitcoin to be used for payment.
- Major stock exchange allowed it to be traded on their platform.
- Major chunk of bitcoin is under the control of few group of people.
The following year saw the price of bitcoin crash to roughly USD 3,700 in December,2018.Bitcoin price in India has staged a recovery since its crash which currently trades at Rs.6.5 lakh per bitcoin
From 2015 onwards crypto-firms had an eye on India as a favourable panorama for commencing and executing buisness although, this proposition radically changed with the advent of the RBI banning financial enterprises from trading in cryptocurrency.
This lead to several established and budding cryptocurrency players shifting their foundation to other countries like Estonia, Singapore, etc.
When IAMAI challenged the RBI circular, it was the first time RBI countered that it did not seek to ban cryptocurrencies.This contradicts with the RBI notice warning organisations against dealing in cryptocurrencies.
There was also lack of definite observations from diverse interdisciplinary committees set up by the government and the Securities Exchange Board of India(SEBI).
In the backdrop of this dilemma, it is unpredictable that the crypto-players will be very encouraged to invest in our homeland.