Topic: Reserve Bank of India - Most confused financial entity right now! - page 2. (Read 366 times)

Yes, because they want a form of control. Government are people you elect to rule over you with rules of the land and they have to be relevant in the system. If they allow a decentralized system, they don't know what you are doing in the country. So a centralized system is the way they can succeede. They have control of banks and fiat which are major instrument of governance.



This is known with third world countries, abuse of power. India government need to listen to opposition which have positive critism. Though with diverse groups but with sincerity they can become a very strong bloc with there population.

This crisis of decision making is the result of the years of rhetoric about need for a "decisive leader". Everybody these days simply looks up to the authority for the smallest of decisions. Delegation of powers has taken a beating as the investigative agencies plus media are being used to hound everyone who goes against the reigning narrative of "social/ cultural revival"

It is indeed sad. It pains to see our country squandering its reputation of pluralism and fairness as the ruling part decided to play the dangerous game of majoritarianism, something that Indian society so astutely avoided despite its teeming diversity through the post-independence years. It is not just about the Hindu-Muslim fear mongering. There is a pattern of behavior throughout government institutions, bureaucracy and media where any kind of alternate viewpoint or dissent is frowned upon and trolled by branding it as foreign conspiracy, fear of Islam, Christian conversion etc etc. The basic tenet of democracy; free speech and respect for dissenting voices is being lost in this blind race towards revival of Hindu cultural identity.

Things are still really nice in India if the market and news are to be believed because there are some decent exchanges like WazirX but the continuous pressure from the Reserve Bank is what is making things worst. At one time they say that the usage of crypto is banned and anyone indulged into crypto transactions will be punished, later the courts lifted the ban and allowed users to transaction in Bitcoins.

Now again they are making things worse by not giving out a clear statement regarding the status of Bitcoins. I don't know how courts and banking system in a country be as confused as they are, they should either ban or just allow Bitcoin transactions but the decision should be final and solid. I know it might be a massive mistake if they legalize Bitcoins because of the anonymity problems but maybe they can allow BTC transactions but increase taxes on them.

@amishmanish
I know and I even followed some of the news about riots that happened in India recently regarding some Hindu and Muslim issues over a bill passed by the government. It is sad to see a democratic country slowly turning into a king and servants kind of situation or call it dictatorship.

Regarding Zebpay, they even tried the last time their ultimate best to get Bitcoins legal status, but they failed because the Reserve Bank doesn't care what these companies think, all they see is that how they benefit from the banning or legalizing of bitcoins in the country.

I completely agree with what amishmanish has written in the previous post. The regime in India has become autocratic, authoritarian and arrogant. If they don't like something, then they will simply ban it. They don't care about opposing voices. They believe that they don't need to listen to the opposition and the minority groups, because they are having a raw majority in both the houses of the parliament and unlimited support form the supreme court. On top of that, the opposition in India is a disorganized and confused lot.

While you are right that this looks more than just confused reactions, I would not take the present government lightly on any of this. A lot of Indians don't realize this and are quick to call people "Anti-national" for pointing this out, but we are now essentially a Right wing country where any dispute with the Govt will be brutally and quickly suppressed.

Advanced democracies generally work in ways where the demands of individual groups, even smaller groups, are kept into mind while framing laws. In today's India, if you are a farmer protesting, then you can be branded as a terrorist, a middleman, a good-for-nothing, spolit on subsidies idiot.

If you are a young student talking about freedom of expression and planning protests, you can be arrested.

If you are the media and don't align yourself in going all out to praise the supreme leader, you will have the ED and CBI sent against you.

If you are Supreme Court judge and you keep the rulers happy, you will be given a chance to wiggle out of your own cases and be given a seat in the upper house.

If the ruling party decides its going to be a ban, i suggest that everyone should ensure they have an alternate plan.

On the better side of things, there has been an ongoing campaign from ZebPay about writing to your constituencies MP. I got a mail this morning and sent it to the MP's id. Make sure you send it forward and ask those you know to garner support on twitter etc.

The damage has been done already, irrespective of whether they are going ahead with the ban or not. When the news about the ban first came out, the exchange rate of Bitcoin was around $28,000 per coin. A lot of the users sold their coins, after the bill was listed in the parliamentary website. Existing users and new users cancelled their plans for new purchases due to the uncertainty. And you can see the impact this had. Most of the Indian users didn't benefitted from the recent bull run due to these factors.

As they can't regulate it in a efficient way they try to forbid exchanges between btc and fiat maximum as possible. This way bitcoin holders will be unable to cashout their profits to local currency and consequently unable to spend their money, as very few places accept bitcoin as payment method. I can't deny it's a smart move from the government, but people can still hold their bitcoins safely for the future, that is what really matters.
Unfortunatelly those who need to convert crypto to fiat frequently are prejudiced for now. P2P transactions are a possible solution, but not everyone has access to trustful dealers to trade with.

It is not that they do not understand this they actively refuse to accept this truth, governments do not want to accept that there is a currency out there that they can not regulate no matter what they do, but this is because as we know governments are really good at destroying anything that is centralized but they have great trouble dealing with decentralized enemies and unfortunately for them cryptocurrencies were created specifically to resist any attempt to try to censor them and the more measures they put in place the harder people will resist.

Even if they are sure about making the cryptos completely ban, it is mandatory to give enough time frame and they can't penalize anyone in that time period because cryptos are completely legal at the time when they accumulated it. If they are not paying their income taxes then it is separate which is not related to ban ot anything. I am also expecting what will be the final result in such country where more people are making themselves money with the way they have when their government is not helping at the hard times.

Ideally if the government is concerned about preventing misuse of cryptocurrency, then they should regularize rather than banning it. But here the intention is something different. As many of the users have pointed out, some of the businessmen who are closely associated with the ruling party have taken a keen interest in the cryptocurrency sector. This proposed bill was created on their behalf, to get rid of the competition. They have tried this strategy with several other sectors in the Indian economy, and have achieved a great deal of success. They are hoping to repeat the same with cryptocurrency as well.

BTW, the penalty being proposed may be termed unconstitutional. Investments made before the ban can't be penalized, as the asset was not illegal at that time (someone working in the legal profession may be able to clarify further). And in case the proposed bill is unconstitutional, then it will be nullified by the supreme court of India.

Planned to announce and yet to be finalized mentioned in this article. This is just a statement from exchange so its can't be taken as official, well even if they ban it completely it is not going to work in any effective way. Already there are ways to convert cryptos to fiat without submitting any KYC documents, like Localcryptos so its time for the government to wakeup and regulate instead of banning.

They have an on and off relationship with bitcoin and I think that them becoming confused is a good thing because this means that their decision is not absolute. I know that governments and banks are afraid to give decentralization a chance but I can understand their perspective on the issue, they fear that it will undermine their presence because cryptocurrency gives the people the power to have a control over their finances, the longer they resist the change, the more they will endure pain.

I don't think that it is because of confused policymaking, but rather a coordinated attack on decentralised cryptos.

The RBI knows exactly what they are getting themselves into. They have made a conscious effort to oust a lot of their domestic corporations whom operated in the crypto space which means that they well and truly want to restrict access to prevent capital flight and for political purposes.

So no, they're not confused. It has been their plan to insidiously move the crypto industry out from the beginning.

But it won't work - a ban would simply not be enforceable given the volume of OTC and P2P trade going on.

Here is the latest news on this subject: https://www.livemint.com/market/cryptocurrency/get-ready-for-hefty-penalty-to-legalize-your-crypto-assets-11613064974027.html

According to sources close to the government, the existing holders of cryptocurrency will be "allowed" to exit, provided they are ready to pay a financial penalty. Now this penalty can range from anywhere between 50% and 100%. And whatever scraps you receive after this measure will be subjected to income tax (which is 42.7% for the topmost slab).

Essentially, the Indian government is confiscating all the wealth from the cryptocurrency holders. 

All I can see is India plans to ban bitcoin, new law proposed to ban cryptocurrency,etc but they are yet to pass the bill right? Every banks are against decentralization for sure so you can't expect from government to think about benefits for the users and not for themselves.

So that basically what happens, when a country confusingly banning bitcoin or cryptocurrencies in general or a certain financial body of it gives restrictions to everything related to crypto then suddenly will turn up a decision and will surprisingly goin to have their own crypto.

This is like the style of those known financial magnates that will say anything against bitcoin and then will suddenly turn and announce that they have bitcoin and likes to invest on it.

And on this case, there's little to no hope about RBI's action towards bitcoin.

This time I am not expecting any positive intervention from the Supreme Court. I have already posted about this. Back in 2020, we got a favorable ruling from the supreme court, because the RBI had banned Bitcoin without citing any law passed by the parliament. This time they are going to get the law passed by the parliament first, before going for the ban. Right now, our options are quite limited.

They can cry a lot about it, but in the end, they can never really ban Bitcoin or crypto or any coin at all. If they ban, there will be case on supreme court, they will fail to provide evidence of why they are banning and ultimately we will win, it's what happened in 2018-2020! Elon's influence is also a big thing, and am sure his positiveness towards crypto will influence our governments decisions as well because the government focuses much on digitalization and follows the west on a lots of matter!

If they really think that they will be able to replace decentralized cryptocurrencies with their own version of centralized shitcoin, then all the very best to them. One reason why cryptocurrency went up by so much during the recent times is due to the fact that central banks around the world have accelerated the printing of banknotes, giving the excuse of COVID 19. Ordinary citizens who want to protect their wealth from hyperinflation are rushing to convert some of their assets in to gold and Bitcoin, which are protected against inflation. Now the solution is not to ban the usage of these assets, but to tone down the uncontrolled printing of banknotes.

Why regulate a cryptocurrency that can't be regulated?

I don' know why they can' understand that? They could stop the use of Bitcoin in their country but obviously, there are a lot of people out there holding their Bitcoins and still earning a profit with this huge surge. I think a lot of people would be pissed about their government and they won't be using that centralized digital currency, I mean, who would use it?