Bitcoin, Crypto currency, Blockchain

India’s position on the topic of crypto-currencies affects bitcoin price.

Crypto-currencies have again allowed once a turbulent week, especially in one of the most densely populated countries in the world: India test. In recent days, several news sources reported that India had decided to step into China’s footsteps and, therefore, is plane harder against crypto-currencies.

“The Reserve Bank of India (RBI) wants reports against crypto-currencies like Bitcoin is hard, even if she pulls a proposal for a digital currency in recital”, Quartz, and calls it “the end of the road in India”.

The publication of this news has caused a price-case for Bitcoin. Coinome, one of India’s largest crypto stock exchanges, saw the price of Bitcoin for a short time more than USD 1000 below the global average. CoinMarketCap, the price fell for the second Time in this weeks, below the $6600 Level.

The price recovered as the RBI made their stance clear

In a Statement, which was published yesterday, noted RBI’s clear the report from Quartz, and that it is not a whitefish, although plan the use of Crypto-currencies to include, to ban completely.

According to the RBI, they disassociate themselves from all relations to Digital Asset companies. In the next few months, other banks should follow in the footsteps of RBI.

“Currently, all banks in India under RBI’s regulations, this means that Cryptocurrency businesses in the future, no longer on Indian banks can rely on their transactions,” explains The Merkle. “This is a disappointing development, however, means that there is a complete ban of the industry.”

The clarification is price clearly had an impact on Bitcoin’s. The price increased at $300 USD, or about 5% and seems to stabilize at around $7000 USD.

In retrospect, one must therefore conclude that the FUD (“fear, uncertainty and doubt”) that India plane crypto-currencies to ban completely, as confirmed turned out. Since the RBI is the only Central Bank, and not a Legislative authority, it would be impossible to ban crypto-currencies to enforce. Only three government institutions in India are empowered to adopt such an arrangement – the state government, the Central government or the Indian law Department.

Therefore, RBI’s “spell” only within India influence. Companies and individual investors can still perform transactions with crypto-currencies, you need to search for only companies which have their Bank accounts outside the country.

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