The status of cryptocurrency in India is a little uncertain. As it stands, cryptocurrency is in murky water, with the Reserve Bank of India (RBI), India’s central bank very much against cryptocurrency, the community is left stranded. Within India, traders and investors can trade crypto to crypto, however they are no longer allowed to cross into FIAT, meaning their assets must be left in cryptocurrency wallets. Indeed, this could change over the next few months, but, as it stands today, cryptocurrency in India is going to struggle to see any real adoption over the next few years, the country is now at risk of being left behind.
This is evident simply just by looking at the status of Zebpay, India’s largest cryptocurrency exchange. Zebpay products are live, meaning Zebpay wallets are in use, however the exchange has been forced to close as a result of this ruling from the RBI.
According to recent reports however, Bitcoin, Ethereum and XRP are now involved in steps that are set to totally bypass the rules established by the RBI in India. Led by Unocoin, India is now set to see the roll out of thirty new cryptocurrency based ATMs. These ATM’s are set to allow users to ‘cash in’ and ‘cash out’ using Bitcoin, Ethereum and XRP, Litecoin and Bitcoin Cash. In the most simple terms, these ATMs will allow people in India to access a point of cryptocurrency to FIAT exchange, a point that is not controlled or regulated by the rules set out by the RBI.
How will this work?
As stated, this is a project that is being rolled out by Unocoin, a well established cryptocurrency brand in India. Unocoin are installing thirty of their cryptocurrency ATMs across three cities in India, with the first now already live in Bangalore. The aim is simply to allow as many people as possible access to a form of cryptocurrency investment that is not policed by the RBI and one that still allows traders to convert their assets back to FIAT, not forgetting that this is forbidden by a crucial part of the current RBI ban.
According to Ethereum World News Sathvik Vishwanath, the CEO of Unocoin has spoken out about the roll out of this new project:
“Following the launch of the first [ATM], Vishwanath added that his company has plans to launch machines in Mumbai and New Delhi in the next seven days. Explaining how these ATMs work, Vishwanath revealed that the minimum deposit and withdrawal amount will be 1,000 rupees ($13.5 U.S. Dollars) and will scale upwards in multiples of 500 rupees ($6.75). The CEO explained that all tokens and crypto assets available on Unocoin and Unodax, the startup’s crypto-to-crypto platform (still legal), will be able to be transacted through the ATMs.”
How does this bypass the RBI ruling?
A key area in the RBI ruling is that no RBI regulated banks (so all banks in India) will be permitted to provide bank accounts to those who are engaging in cryptocurrency related activity. Thanks to the blockchain and thanks to the technology behind the machines by Unocoin, these ATMs offer users access to a non-RBI regulated bank account. It is through this that these machines are going to help the community bypass the RBI’s ruling.
According to Ethereum World News Vishwanath has said:
“These machines are stand-alone machines that can accept and dispense cash. These ATMs help people to cash in and cash out which was not possible before due to RBI restriction on banks to not provide bank accounts. The gap is now completely filled by these ATMs except that physical access is required to deposit and withdraw money.”
The only restriction here is that these machines can only be used by people who are physically able to gain access to them. Other than that, it looks as if that through Unocoin, investment in Bitcoin, Ethereum, XRP, Litecoin and Bitcoin Cash will once again become possible.
BTC, ETH, XRP and others are making their own rules, such is the liberating beauty of the blockchain.
Now, you may have noticed a recent surge in the price of Bitcoin – we want to end this video on a note of positivity today as this is the first surge we have seen for some time. What’s happened here?
According to CCN:
“The price of Bitcoin has surged from $6,300 to $7,500 on Bitfinex, a major cryptocurrency exchange that reportedly operates Tether LLC, a firm that oversees the development of stablecoin Tether (USDT). Bitcoin is being traded with a significant premium on exchanges that have integrated USDT such as OKEx and Huobi, because traders have initiated the biggest sell-off of USDT to date. The sudden dump of USDT led the price of the stablecoin to drop to $0.94, by around 6 percent from its peg at $1. The drop in the value of USDT formed a premium on Tether-integrated cryptocurrency exchanges.”
The easiest way to understand this, is that a drop in the value of Tether as a result of a large dump in USDT has caused a surge in the purchase of Bitcoin and other currencies that are available through Tether on a range of exchanges. By converting USD to Tether, when Tether is at a rare and almost impossible low price, traders have the chance to get the very most for their money when they go on to trade this for Bitcoin, as we have seen today.
The market surge is positive news, though as it stands we don’t expect this rise to continue for a significant amount of time, it’s an anomaly that at the very least demonstrates just how unpredictable and volatile the markets really are.
Original Post: BTC, ETH And XRP Are Making Their Own Rules