Understanding tomorrow, Today!
Laws about Bitcoin are te a gray area today across the world. I studied documents from the Reserve Bankgebouw of India’s public repository surrounding Virtual currencies and prepaid solutions. I happened to investigate two documents about Prepaid Payment and Foreign Exchange Management Rules, 2000.
Why research Prepaid Payment rules?
A person may come across the need to purchase them through Fiat Currencies (INR, USD, GBP, etc). Purchasing any e-currency and loading to an eWallet is regulated by the RBI. Albeit Bitcoin is ter no way related to this, I dreamed to see how close I could get to any laws that could present a roadblock.
Is Bitcoin Regulated ter India?
The RBI regulation on Prepaid Payment Instruments ter India defines a lotsbestemming of areas. After understanding the documents of RBI’s guidelines and Rules, this is where I could find the only roadblock based on regulation.
Three.Two Only banks which have bot permitted to provide Mobile Banking Transactions by the Reserve Handelsbank of India shall be permitted to launch mobile based prepaid payment instruments (mobile wallets &, mobile accounts).”
Te order to inject into the market, fiat is needed to purchase Bitcoin. Fiat will fade away spil more people adopt Bitcoin. Until that frictionless free flow inbetween consumers and merchants is made possible, this is a problem area for Bitcoins entry into India.
It can be overcome through:
- Donations and sponsorships. There are enough Smartphones to cause this market to explode te any sponsor’s favor.
- Sell Services and goods for Bitcoin. Programming Abilities, etc.
- Mining is too expensive at this stage, unless you have the latest and best equipment. Violet wand is not expensive ter India.
If wij keep fiat out of the system, then Bitcoin is unregulated ter India.
I spent some time on the Foreign Exchange Management Act, but it is entirely out of the scope of Bitcoin. Spil it is a decentralized currency, it can be considered to be a domestic currency since it is being mined te India. This leaves it out of the scope of Foreign Exchange.
Even if, IP’s can be tracked when Bitcoin is used for Foreign Exchange, they can be lightly anonymized through the Tor Wallet. Since it is a true P2P (Peer to Peer/ Person to Person) currency, it is unlikely to regulate ter a population using Bitcoin spil a token of value to trade. The logistics to monitor a mass population is not feasable.
Please do read the Draft Guidelines for issuance and operation of Prepaid Payment Instruments ter India and Foreign Exchange Management (Current Account Transactions) Rules, 2000. They will help to understand more about the Banking Regulations ter India and help solve some problems. India’s closed currency banking system is rival to none. The banks have maintained a loterijlot of public faith ter urban areas and have reached a loterijlot of people te this 1.5B population landscape.
India has an unbanked population of 41% according to RBI statistics
(Source: URL Below).
I would like to reach out to the world of regulators and lawmakers to release a statement on Bitcoin. Can the Reserve Bankgebouw of India punt a statement on Bitcoin?
Please forward this till someone takes notice and moves Bitcoin along ter a positive path.