India: Pro-Bitcoin decision of the Supreme court of justice may falter
In the past week, the Bitcoin celebrated bulls, when it became known that the Supreme court of India annulled on Wednesday the Anti-Crypto-restrictions by the Indian Central Bank, the Reserve Bank of India, for the industry.
In a ruling Wednesday, the Supreme court of India lifted the restrictions that had been imposed by the Reserve Bank of India the banks. This step allows the banks to facilitate banking transactions with companies in the industry, and thus eliminate “a major hurdle for the development of the sector”, as Reuters said. In fact, Bloomberg’s analysis of the decision of the Supreme court of justice stated that the ruling Wednesday means that “investors and companies that invest in virtual currencies, can fight back against stricter regulations planned by a skeptical government,” and added that all future provisions, for the Indian Bitcoin industry are likely to be less stringent, since the prohibition of RBI now.
Since the prohibition of RBI’s many stock exchanges, ATM operators and projects forced, to look for opportunities elsewhere, has seen the lifting of the restriction as a massive gain for the introduction of Bitcoin in India. Unfortunately, the decision is not so not quite sure and final; reports indicate that the Indian tried Central Bank, against the decision of the Supreme court of India to proceed.
India’s Central Bank is still skeptical of crypto
After the end of last week, a report published in the Economic Times Insider sources (“people familiar with the subject say”) that the RBI intends to submit to the Supreme court a Petition regarding the repeal of the crypto-prohibition. The newspaper wrote that the sources believe that the Central Bank does this because she believes that the re-introduction of crypto-currencies in the economy could pave the way for the digital asset trade and the banking system at risk. It was not explained whether the RBI has a reason to make such a Petition against the judgment, although the article made it look as if the Supreme court would have the upperhand, by declaring, that the judges considered the crypto-ban to be unconstitutional and added that the banks involved with crypto-currency companies, represent in any direct way a harmful act.
Interesting way to ignore a lot of crypto companies, the potential risk of a reversal of the reversal, so to speak, as some exchanges are already going to open the Bitcoin-services for Indian customers. The judgment of the Supreme court should be maintained, it will probably currencies a major impact on all of the Crypto. In particular, XRP could benefit from it. Credible Crypto, a prominent industry commentator and traders, said:
The clarity of the rules was the last piece of the puzzle, the Ripple kept to edit the Indian remittance market aggressively. Great for XRP.
The newfound clarity could appease, in fact, the fears that the use of crypto-currencies based international payment systems, such as the On-Demand-liquidity-System of a Ripple is a viable Option.
