India Will Ban Bitcoin and Develop Its Own Cryptocurrency

Inforexnews

India's central banking authority, Reserve Bank of India (RBI), has announced that it will stop doing business with anyone or any business dealing with cryptocurrency. However, in the same breath, it has made clear that the plan to develop the cryptocurrent itself will continue.

India's Ministry of Finance has previously criticized Bitcoin for its volatility and lack of "intrinsic value," as highlighted by CoinTelegraph, but the latest move by the RBI is currently the most impactful. The RBI has now ordered anyone involved in cryptocurrency trading in India, to sell their remaining assets or relocate their business within three months. After that time limit, RBI will not support cryptocurrency trading.

Prohibition of Developing Cryptocurrency Due to Worry

develop cryptocurrency

The reasons for this move are forms of consumer protection concerns, market integrity, and money laundering. The last point was duplicated in a press conference, where the RBI vice-governor said that cryptocurrency undermined efforts to prevent money laundering. He also said cryptocurrency has the potential to jeopardize financial stability if allowed to grow too large.