Cryptocurrencies in India are legal
A pending bill can still inhibit the flourishing of cryptocurrencies in India, and the country’s parliament must still rule on the “Prohibition of cryptocurrency and the regulation of the official digital currency bill” of 2019, according to A report published today.
If passed, the bill will introduce unique regulatory frameworks for virtual currencies, utility tokens and commodity backed tokens. This will probably create a complex excluding legislative apparatus for Blockchain companies to navigate.
On March 4, the country’s cryptocurrency community rejoiced when the Supreme Court of India ruled that the ban on the Reserve Bank of India (RBI) was “disproportionate and unconstitutional.”
The circular had prevented financial institutions from providing banking services to companies that operate with cryptocurrencies. The ban had been in effect since April 2018. It was aimed at companies that offered “any service in relation to virtual currencies.”
Less than 24 hours after the restrictions were repealed, several Indian cryptocurrency exchanges had already resumed fiduciary deposit services, including Unocoin and Wazirx.
The Central Bank of India plans to combat the cryptocurrency ruling of the Supreme Court
While the Indian industry of
cryptocurrencies has won a judicial battle for the prohibition of access to the
central bank banking, it is possible that the war is not over yet.
The Reserve Bank of India, which issued an order to cut crypto companies from the country’s financial system in April 2018, now says it plans to return to the Supreme Court to fight the ruling that revoked its ban, according to The Economic Times
The RBI will submit a petition for review on the decision of the judges of the court, who assured that the monetary institution had not been balanced in the issuance of the order. Concern that the restart of the encryption trade represented a risk to the banking system was mentioned as the main reason behind the central bank’s next appeal.
Since Wednesday’s ruling, some Indian cryptocurrency exchanges announced that they have restored deposits and withdrawals through bank accounts.
Local commentators predict an increase in cryptography activity in India. Recalling that for two years the exchanges have been forced to close, leave the country or resort only to the crypto to crypto trade.
U.S. Federal Reserve has channeled the equivalent of half of Bitcoin’s total supply
The Federal Reserve of the United States (EDF) has channeled the equivalent of half of the total Bitcoin (BTC) supply to the economy, but banks want even more money.
As the New York Fed confirmed on its website, so-called repurchase operations, or “repos,” totaled $ 89 billion on March 5 alone.
Repos are designed to provide temporary liquidity to lenders. The Fed was reacting to economic weakness against the Coronavirus, as it had significantly reduced its interest rate target this month.
The liquidity wave on Thursday was equal in value to approximately 9.8 million BTC, more than half of the total supply extracted.
Meanwhile, the general demand for repos cash in recent weeks has even exceeded the EDF limit, The Wall Street Journal added on Friday.
Finboot CEO suggests Blockchain technology for environmental responsibility
Companies advocating environmental, social and government responsibility (ESG) initiatives should adopt Blockchain technology, said the CEO of Spanish software firm Blockchain Finboot, on March 5 in a publication of the company’s official blog.
According to Finboot CEO and co-founder, Juan Miguel Pérez, to communicate the achievements of ESG initiatives, companies must obtain quantitative metrics that verify their progress and authenticate what they say. That’s where Blockchain technology comes in.
But the introduction of traceability in ESG policies, says Finboot CEO, is not as easy as it seems. Because such implementation involves complicated supply chains.
The cofounder of the Spanish firm Blockchain made the following statement:
“Facing this important challenge, adopting technology is crucial for companies to demonstrate that they have fulfilled their initiatives. And which of the many available digital technologies should we consider when measuring sustainability goals? Blockchain ”, said Juan Miguel Pérez, CEO and co-founder of Finboot.