What if RBI plans to launch India’s own cryptocurrency?

At present India is been going through a major regulatory process related to the crypto market sector.

Apparently the innovation of decentralized finance in the 21st century has taken Indian rulers by surprise.

This is because in 2018, the Reserve Bank of India prohibited fiat banking from having commercial ties with crypto-cosmo companies where bitcoin can be bought in India. Without a doubt, an indirect action to prohibit the trading of decentralized crypto-assets.

Then, two years later, specifically in March 2020, the Supreme Court of Indian Justice would temporarily lift the decision that the Indian Reserve Bank had taken, but this action, beyond reestablishing any rights, would be to provide sufficient time for the Indian authorities to make a regulatory decision on the case.

Meanwhile, the crypto-community of India users and businesses have enjoyed a year of 2020 and early 2021 that is often referred to by the media as the crypto-spring India. This is because citizens have felt more free to buy bitcoin in India.

Subsequently, almost a year after the decision of the Supreme Court of Indian Justice, the Reserve Bank of India has presented a bill that not only proposes a regulation or possible ban on the decentralized cryptocurrency market, but also talks about of the creation of a national cryptocurrency issued by said entity.

This fact shows that the majority of Indian rulers are not in favor of a decentralized economy through cryptocurrencies such as bitcoin or Ether, as this could counteract their economic, financial and social control over the Indians.

If you want to buy bitcoin in India you can do it in a fast, safe and reliable way through the following link, even if the Reserve Bank of India decides to prohibit the purchase of bitcoin in India, you can still do it through Remitano.

The stance that the Indian government is showing for now is not surprising, in fact, it is exactly what is expected of most of the world’s governments towards cryptocurrencies and decentralized finance, this because they feel threatened by the libertarian character of these.

What if the RBI launches its own Indian cryptocurrency?

In essence, nothing happens, since a centralized cryptocurrency controlled by a government fulfills almost the same function as the fiat currency, in this case the Indian Rupee (INR), the only difference it could have with the fiat currency focuses on aspects of techniques such as the encryption.

Which is why the first thing you should know how to do is not to be fooled, learn to differentiate between the different types of cryptocurrencies that exist.

Types of Cryptocurrencies

  • Government centralized: they are all those cryptocurrencies that, although they meet technical encryption characteristics through blockchain technology or other technology, are still under the control of a government and its central bank, such are the examples of: the Chinese eYuan and the Venezuelan Petro (PTR).

What if RBI plans to launch India's own cryptocurrency? 1

Source: Bloctrends.

  • Centralized Private: are all those cryptocurrencies that, although they provide an optimal and high-quality public service, and are based on the blockchain or other technology, are managed and controlled by a private company. Examples of them are: XRP a cryptocurrency founded and controlled by the company Ripple Labs. We could also mention the case of USDT, a cryptocurrency (of the stablecoin type) controlled and managed by the company Tether Limited.

  • Decentralized: are all those cryptocurrencies that are supported by a consensus protocol that allows decentralized governance of all its operations. The most common consensus protocols are: Proof of Work, Proof of Stake and Tangle, among others. Examples of these cryptocurrencies are: bitcoin, ether, litecoin, stellar, dash, among others. These cryptocurrencies are not controlled by governments or private companies, in contrast, they are represented by decentralized foundations.

What if RBI plans to launch India's own cryptocurrency? 2

If you choose the option to be freedom through decentralized finance, you can buy bitcoin India through this link, even if the Indian government prohibits trading cryptocurrencies in that nation, remember that if the web links and apps are blocked in the Asian giant, all you have to do is enter through an international VPN, and ready: Remitano. 

Conclusion

Basically you must choose the type of economy or cryptocurrency that best suits your philosophy of life, to discover it to ask yourself questions such as:

  1. Do you want your nation’s government to continue to control and limit your personal finances in some way? If your answer is yes, you should continue to use the fiat currency, that is, the Rupee (INR), or the cryptocurrency that the Indian government plans to release, the USD or the EUR, with all its regulations, limitations and inflation.
  1. Do you want to enjoy the technological benefits of a cryptocurrency, such as its speed, privacy, but feel backed by the prestige of a private company? If your answer is yes, choose the option of private centralized cryptocurrencies like XRP (Ripple) or USDT (Tether Limited).
  1. Do you want to enjoy the decentralized technological benefits of a cryptocurrency that cannot be controlled by governments and private companies, and that also gives you control and absolute financial freedom? If you answered yes, then choose decentralized cryptocurrencies such as bitcoin and ether that will make you financially free, and if you are financially free you will surely be free in all areas of human life.

Marcelo Durán 

Writer of newspaper articles.