The ban imposed by Reserve Bank of India seems to have a reverse effect on the ecosystem of cryptocurrency India. Although the main objective was to restrict the flow of black money and regulate the new payment model, the crypto exchanges built new methods of operations to continue the trade. Despite the ban values of cryptocurrencies have got back to a decent figure and have recovered a little bit from the fall earlier this year.
According to Moneycontrol, it is stated that the Reserve Bank of India outlawed crypto trade from the banking system by choking its access to the payment system and transactions from a bank. Immediately, several cryptocurrency exchanges began to look out for new methods which led to the implementation of peer-to-peer exchange model which can be operated within the imposed restrictions without going out of the law.
The latest trade value of the Bitcoin and other virtual coins seems to have improved and increased in the last few weeks. The transaction value in the domestic exchanges had a huge jump of about 25 percent after the ban. However, it has an overall depreciation of about 54 percent since the beginning of this year. Perhaps, there is a clear-cut reverse effect of the ban on crypto trade. Indeed there was no explicit ban on them but for sure it was meant to put a restriction on the outflow of cash in the ecosystem of cryptocurrency India.
Why Was Cryptocurrency Created?
The prime objective of creating digital currency was to render the irrelevancy in the established finance system. The underlying technology of this system was blockchain which ran the entire operation of buying and selling on a network. This system does not require a central regulatory authority and uses a ledger system which is formed on a peer-to-peer architecture.
Regardless of greater adoption among the common people, the government remains determined to restrict its growing financial clout in the ecosystem of cryptocurrency India.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]