The Indian Government is reportedly worried about the impact that Bitcoin and other cryptocurrencies might have on the Indian rupee, should they be accepted as a means for making payments.
Bitcoin a “Major Concern” For Local Ministers
A high-level panel, tasked with coming up with the regulatory framework regarding cryptocurrencies in India is reportedly worried about the impact Bitcoin might have on its fiat currency – the Indian Rupee.
The committee concerned with the matter was let by Subhas Chandra Garg – a high-level bureaucrat in the country.
Anonymous representatives familiar with the matter have told Quartz India:
If bitcoin and other digital currencies are going to be allowed to be used for payments then whether it will end up destabilizing the fiat currency is a major concern for them (the Garg panel). The overall impact on the financial ecosystem that it is likely to have is still unclear and it has been a challenge to convince them on this particular point.
Industry experts, however, have stated that worries of the kind might be rather premature, given the fairly nascent stage of the entire cryptocurrency market.
India’s Questionable Position
In April 2018, the Reserve Bank of India (RBI) ordered all regulated financial institutions to refrain from providing services to anyone who’s involved in dealing with digital currencies.
And while there’s no formal legislation which bars it as of yet, institutions have begun acting on it.
Recently, reports on social media started circling the Internet, revealing that banks in the country are saying they will close customers’ accounts if they have anything to do with Bitcoin and other cryptocurrencies.
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