Cryptocurrency Transactions With Banks End; Now Exchange Possible Only With Peers
Reserve Bank Of India’s (RBI) deadline to banks for termination of any relationship with cryptocurrency-driven organisations, ended on Friday, July 6. RBI had provided a three-month-long buffer period to commercial banks to snap their ties with cryptocurrencies, as reported by Financial Express
Following this, India’s biggest digital currency exchange, Zebpay, had asked investors to withdraw their money before the deadline ends, as reported by Economic Times
To survive the cryptocurrency ban, the retail investors are now most likely to work according to peer-to-peer (P-2-P) networks. It means that they would only be able to transact with a fellow trader. This P2P model will allow buyer and seller to interact directly without the need for exchange.
However, this is not the end of cryptocurrencies as RBI had banned banks from having any cryptocurrency related transactions and not the cryptocurrencies themselves.
As a result of this ban, Indian buyers will have to purchase bitcoins from their peers, probably at a higher cost. As this ban comes into force, cryptocurrency companies will not be eligible to avail for loans or to have a corporate bank account, as reported by Times of India
It has been concluded that RBI has taken this step to protect the Indian investors from falling prey to cybercriminals.
Also published on Medium.