There was much to be celebrated when the news broke yesterday green lighting the crypto industry in India. The future of cryptocurrency in the country could be huge and startups need to get their act together now.
India’s Crypto Future
Crypto confidence has returned following a Supreme Court verdict overturning a Reserve Bank of India statement that had restricted banking access for digital asset trading.
India’s crypto community has been given a new lease of life after waiting almost two years for the decision they wanted.
Now that the apex court has scuppered any RBI plans to quash the industry, professionals and advocates alike are hoping that the government will take the initiative to encourage the fledgling industry and the associated innovation and investment that comes with it.
Digital currency companies are already reviving plans to expand their businesses in India. According to the Economic Times, Singapore-based crypto firm ZPX will consider ramping up operations. Nischal Shetty, the co-founder of the crypto exchange WazirX, added that investment in Indian markets will begin this year.
He encouraged the next step which is to ensure that the “crypto industry of India is involved in building the crypto regulatory framework,”
The exchange, which Binance acquired in November last year, wasted no time in promising local currency withdrawals soon to be launched.
नमस्ते, अब INR deposit & withdraw करो दिल खोल के 💪
Coming soon!#IndiaWantsCrypto #IndiaWelcomesCrypto pic.twitter.com/hbvOW6ZZ6o
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) March 4, 2020
Community Wish List
According to Quartz, the Indian crypto community’s wish list includes a government appointed advisory council that will guide future policy on digital assets. The council should include representatives from national and international blockchain operators in addition to regulators and lawmakers. Cooperation with global regulators and central banks is also essential for success.
A sandbox facility is also on the list to enable extensive testing and research and development for crypto-related software and projects. The RBI already has a sandbox but it explicitly excludes crypto currencies, and this should be reviewed. This would allow Indian companies to develop corporate crypto coins for payments and settlements.
A sovereign digital currency is the next logical step for the central bank and a crypto rupee would be welcomed. Just as in China, a private currency blockchain would yield unprecedented surveillance and cash flow control opportunities for the RBI.
It was also suggested that global central banks have been stock piling safe haven assets such as gold during the Covid-19 outbreak as a hedge against economic collapse. If the RBI were slowly accumulating even $1 billion worth of bitcoin it would drive up prices massively through legitimization as an asset class.
These are just a few scenarios for India’s crypto future which has now been officially endorsed by the Supreme Court.
Will India lead the world in crypto innovation? Add your thoughts below.
Image via Shutterstock