RBI U-Turn over Crypto-Currency

 

For while considering an economy without appropriate rules for dealing in money market where financial securities, private land, saving, portfolio investments, bonds, gold etc are been buy and sell without any approval or prudence of central authority. Envisage economies without monetary filter where you have been paid fat commission for solving the blockchain or sources, similar like video games, you can transfer commodity (monetary terms) with a click without the intervention of any foreign or national agency and customs. I am addressing a small portion of the feasibility of cryptocurrency and its future.

The Indian Government effigy who monitors nationwide money operations (RBI) has already directed to wind up all the transactions pertaining to Bitcoin (crypto-currency) to its Public Sector Banks (PSB). But story is not so short and simple as it appears, bitcoin posses more than 19 billion worth in international market in Indian context Bitcoin business already reached to millions (Business Standard) day after RBI announced for Bitcoin pack up investors started pulling out their money as though they are expecting returns from Bitcoin sinusoids in its share prices though Bitcoin prices had been fallen worldwide (Bloomberg). Financial Economist like Prof. Robert Sheller has already forecasted Bitcoin as bubble unlike many other financial experts ready to gamble on crypto-currency and its future.

I think RBI is more concern about losing its dirigisme over monetary transmissions as he continuously demanding freedom over PSB and complaining about its limited role (RBI act as an advisor for various PSB Executive Boards). The proliferation of crypto financial market will certainly reduce more influence in its monetary transmissions performed by RBI; one should always learn from his past Indian is a victim of foreign company frauds. A company like M.T Gox, Bitcoin Box (exchange company, Bitcoin) only provide a medium of transferability of monetary value hence not interested in its sources, India already facing the problem of black and retrospective taxes frauds (Vodafone) opening different routes for money launders will exacerbate black money problem more rather than ameliorating it. RBI decision over scraping Crypto Currency business from Indian financial market is applaudable.

 

Mohit Pandey

 

 

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