BitXmi CEO, Sanjay Jain, Shares His View on the Cryptocurrency Ban in India.
Kataryna Kovtun June 24, 2020
On March 4, 2020, the Supreme Court of India reversed the decision of the Reserve Bank (RBI), which is the country’s central bank, dated April 6, 2018. The RBI Directive previously prohibited banks from providing services to companies that deal with cryptocurrencies, including opening current accounts. This move by the highest judiciary in India has attracted the attention of leading media, including Bloomberg and CNN. However, on March 9, it became known that the RBI was not going to decide the Supreme Court and would file a motion to revise the new ruling. What does this mean for the crypto market and what are the prospects for the development of the industry in this region now? Comments are provided by the CEO of the Bitxmi cryptocurrency exchange, Sanjay Jain.
A positive sign for Bitcoin.
“First of all, we think this is a positive sign for Bitcoin. Since mid-March, after the so-called “Black Thursday” (March 12) and a one-time collapse of the Bitcoin rate, it has been showing a bull trend for four months and is confidently striving to overcome resistance at $ 10,000. All members of the BitXmi team are sure that the lifting of the ban on cryptocurrencies in India played an important role.
By its ruling, the Supreme Court of India fully legalized the purchase and sale of cryptocurrencies in a country that is not only the second most populous state in the world (1.37 billion people) but also the third global economy in terms of GDP in terms of purchasing power of the Indian rupee (fifth — by nominal value). This is a huge potential market for cryptocurrencies.” — Sanjay considers.
What influenced the departure of Indians to cryptocurrencies?
“For the people of India, the legalization of cryptocurrencies is a very important step. My team and I carefully monitor the economy of India as a country with huge crypto potential, and we understand why Indians are looking for new reliable ways to invest and protect their savings.
The fact is that the devaluation of the Indian rupee is a long-term trend, and inflation is growing year on year, amounting to about 10% by the beginning of the year. Not surprisingly, Indian citizens are looking for alternative ways to preserve their savings. In the country, interest in the most important alternative to the Indian rupee, gold, has fallen sharply. This is due to several measures taken by the government to confiscate bullion in cases where an Indian citizen cannot confirm the financial source of their origin. And also due to the depreciation of the Indian rupee.
Moreover, at the beginning of the year, there was a collapse in import purchases of gold by India. Compared to January 2019, this indicator fell by 31%. This is a powerful signal for the global precious metal market, considering that India is one of the main importers of gold in the world.
Turning away from gold, the Indians are turning in the direction of cryptocurrencies. This is evidenced by the daily turnover of cryptocurrencies in the country, which ranges from $ 50 to $ 60 million and will only grow.” — considers Sanjay
The future of cryptocurrency exchanges in India.
“Unlike the world-famous cryptocurrency exchanges that announced their intention to return to the Indian cryptocurrency market, there have never been any direct prohibitions on BitXmi to register, trade, or withdraw funds for Indians. From the very beginning of the exchange, we understood what a huge potential is contained in the second most populous state in the world. A complete ban on cryptocurrencies would mean for the country the leak of a large number of young specialists and simply crypto enthusiasts abroad. Besides, despite the ban, the turnover of cryptocurrencies in the country was still not small.
We fully support the initiative of venture investors to invest in the Indian market for the development of blockchain and crypto technologies. Over the past months, many investors have come to the country and successfully invested. At the moment, I am also considering several options for investing in the crypto industry of India. But it is too early to talk about this.
It is also nice to be aware that India plans to train crypto experts on its own. For example, in the state of Kerala in southern India, they plan to train at least 20 thousand experts in the field of blockchain technologies by 2021.” — сomments Sanjay Jain, CEO of BitXmi.
“In conclusion, the BitXmi team would like to congratulate all Indians on lifting the ban on cryptocurrencies in the country on behalf of the entire team of the cryptocurrency exchange BitXmi. I have been cooperating with the Indians for a long time, including in the state of BitXmi. These are excellent specialists in the crypto sector.” — summarized Sanjay.