Amidst Indian financial authorities taking regulatory and enforcement actions against Bitcoin operators, a pool of some major Indian corporations have joined together to show support for Bitcoins.
According to the sources placed in the market, some large corporates are petitioning hard with government authorities to consider revising their take on the digital currency. Earlier this week, Indian government had taken a strict stand against the digital currency which were being circulated in the nation without any regulatory approvals, registration or authorization.
The government had though released a statement describing that the authorities are getting complaints by Bitcoin users on a regular basis, describing them losing their digital currency to unreliable entities. Due to the lack of a proper legality over the matter, the Reserve Bank of India is examining these issues and has banned the use of unregulated digital currencies – including Bitcoins – until a proper conclusion can be made.
Major Indian corporates have thus come forward in a hope to intensify Bitcoins before government departments and regulators in India. The sole aim here is to advocate a new digital financial system that is more secure and safe than the traditional and current brick-and-mortal model.
Meanwhile, none among these corporates have been reported to be in any sort of Bitcoin business. However, a senior official has indicated that they may start their own virtual currency platform under government regulation.
India is not the first country to have been strict on Bitcoins
The similar news have also been fed in past from the U.S., China, Norway and many other nations, banning Bitcoins on the basis of it being decentralized, and having potentials to be used illegally for drugs and arms trafficking. Some countries however have opened an alternative to treat Bitcoin as a commodity rather than real money, only for the digital currency’s limited stock in the market.
While Indian investors and corporates are still waiting for a regulatory clarification on the digital currency, it would be safe to say that the RBI may follow the footsteps of China and Norway in making Bitcoin a commodity rather than real money, hence resisting a rough total of 30,000 Bitcoin holders in the country to spend the digital currency.
To contact the reporter of this story: Deepak Tiwari at Deepak@forexminute.com