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Wednesday, 27 June 2018

India and its relationship with digital currencies

Por olimurs.92

The adoption of cryptocurrencies represents a crossroad for India; on one hand they are catalytic economic that could help to combat the poverty, but, on the other hand they can transform into tools of the black market. At the moment, the fight for the regulation of the digital currencies arrived to the Supreme Court of India, after overcoming several petitions in inferior tribunals.

Several petitions of judicial command presented to the Indian Supreme Court are liberating during these days a huge battle in favor of the use of the digital currencies. The houses of change, investors and cryptocurrencies promoters are awaiting the verdict that will decide if it is possible to revoke the prohibition of the Indian Reservation Bank about the use of digital foreign currencies in the bank system, if they will be vetoed completely or if it will remain in an intermediate point with regulations that limits its influence in the black market.

From 2013 the mentioned bank began to emit warnings about the risk of the use of virtual currencies, however these suggestions had little effect and the massive adoption of this type of money became a reality. In past January the 'exchanges' had the necessity of suspending the inscriptions in their platforms due to the existence of an enormous quantity of new users wanting to enter in the market. In this context one fact stands out: only the Indian market, a country with more than 1250 of millions of inhabitants, represents more than 10 percent of the international volume of trade of 'bitcoins'.

Although the growth of the trade with this cryptocurrency let in evidence that it actually was an important growing industry, the government's concerns were legitimated by the increase of swindles, cryptoactive robberies and the cybernetic attacks.

As answer to this situation, it was established a regulative mark culminated with the temporary prohibition of its use on the part of the bound companies to the Central Bank of the Asian country. Immediately, several 'exchanges' and 'startups' presented a public rebuttal to that prohibition alleging that it violated the constitutional right to equality and the free trade.

Next July 20 will take place an audience with several houses of change, among them ‘CoinDCX’, ‘Koinex’, ‘Coindelta’ and ‘Throughbit’, with the objective of suspending the prohibition temporarily until the demand concludes. In spite of it will take some time, the bank just declared itself optimist about the future of digital currencies in the country. Until then, the cryptocurrencies situation in India will remain stagnated.