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LATEST BITCOIN NEWS
RBI IS MULLING OVER ITS OWN CRYPTOCURRENCY : DG
Dated 23.07.2021 : Shri T Rabi Sankar, Deputy Governor, Reserve Bank of India , has advised , in a webinar organized by Vidhi Centre for Legal Policy, New Delhi , that RBI is also exploring , like other central banks , the pros and cons of introduction of CBDCs ( “Central Bank Digital Currencies ) since quite some time. He also disclosed that the High Level Inter-Ministerial Committee (November 2017) constituted by Ministry of Finance, Government of India (GoI) to examine the policy and legal framework for regulation of virtual / crypto currencies had recommended the introduction of CBDCs as a digital form of fiat money in India.
In his speech , he touched some of the issues relating to digital currency as below "
What is CBDC ? : A CBDC is the legal tender issued by a central bank in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different.
Major Difference between CBDC and other private cryptocurrencies : There is no ISSUER for the private cryptocurrencies and are not convertible one-to-one into any sovereign currency , while CBDC is issued by respective central banks and has equal value to the regular sovereign currency issued by them .
Why Central Banks want to issue CBDC ?
1. Central banks, faced with dwindling usage of paper currency, seek to popularize a more acceptable electronic form of currency (like Sweden);
2 . Jurisdictions with significant physical cash usage seeking to make issuance more efficient (like Denmark, Germany, or Japan or even the US);
3. Central banks seek to meet the public’s need for digital currencies, manifested in the increasing use of private virtual currencies, and thereby avoid the more damaging consequences of such private currencies.
4. CBDCs have clear advantages over other digital payments systems – payments using CBDCs are final and thus reduce settlement risk in the financial system. The need for interbank settlement disappears
Why RBI and other Central Banks mulling over CBDC ?
The advent of private virtual currencies (VCs) may well be another reason why CBDCs might become necessary. It is not clear what specific need is met by these private VCs that official money cannot meet as efficiently, but that may in itself not come in the way of their adoption. If these VCs gain recognition, national currencies with limited convertibility are likely to come under threat. To be sure, freely convertible currencies like the US Dollar may not be affected as most of these VCs are denominated in US Dollar. In fact, these VCs might encourage the use of US Dollar, as has been argued by Randal Quarles3. Developing our own CBDC could provide the public with uses that any private VC can provide and to that extent might retain public preference for the Rupee. It could also protect the public from the abnormal level of volatility some of these VCs experience. Indeed, this could be the key factor nudging central banks from considering CBDCs as a secure and stable form of digital money. As Christine Lagarde, President of the ECB has mentioned in the BIS Annual Report “… central banks have a duty to safeguard people's trust in our money. Central banks must complement their domestic efforts with close cooperation to guide the exploration of central bank digital currencies to identify reliable principles and encourage innovation.”
The effect of CBDC on Banking System :
1. CBDCs, depending on the extent of its use, can cause a reduction in the transaction demand for bank deposits. Since transactions in CBDCs reduce settlement risk as well, they reduce the liquidity needs for settlement of transactions (such as intra-day liquidity). In addition, by providing a genuinely risk-free alternative to bank deposits, they could cause a shift away from bank deposits which in turn might reduce the need for government guarantees on deposits (Dyson and Hodgson, 2016).
2. At the same time reduced disintermediation of banks carries its own risks. If banks begin to lose deposits over time, their ability for credit creation gets constrained. Since central banks cannot provide credit to the private sector, the impact on the role of bank credit needs to be well understood. Plus, as banks lose significant volume of low-cost transaction deposits their interest margin might come under stress leading to an increase in cost of credit. .
3. There is another risk of CBDCs that could be material. Availability of CBDC makes it easy for depositors to withdraw balances if there is stress on any bank. Flight of deposits can be much faster compared to cash withdrawal. On the other hand, just the availability of CBDCs might reduce panic ‘runs’ since depositors have knowledge that they can withdraw quickly. One consequence could be that banks would be motivated to hold a larger level of liquidity which could result in lower returns for commercial banks.
4. In actual fact, notwithstanding the benefits of CBDCs vis-à-vis bank deposits, since CBDCs are currency and therefore do not pay interest, their impact on bank deposits may actually be rather limited. Depositors that require CBDCs for transactional purposes are likely to sweep day end balances to interest-earning deposit accounts.
To read complete speech of Mr T.Ravi Sankar dated 22.07.2021 , CLICK HERE
Dated 23.07.2021 : Shri T Rabi Sankar, Deputy Governor, Reserve Bank of India , has advised , in a webinar organized by Vidhi Centre for Legal Policy, New Delhi , that RBI is also exploring , like other central banks , the pros and cons of introduction of CBDCs ( “Central Bank Digital Currencies ) since quite some time. He also disclosed that the High Level Inter-Ministerial Committee (November 2017) constituted by Ministry of Finance, Government of India (GoI) to examine the policy and legal framework for regulation of virtual / crypto currencies had recommended the introduction of CBDCs as a digital form of fiat money in India.
In his speech , he touched some of the issues relating to digital currency as below "
What is CBDC ? : A CBDC is the legal tender issued by a central bank in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different.
Major Difference between CBDC and other private cryptocurrencies : There is no ISSUER for the private cryptocurrencies and are not convertible one-to-one into any sovereign currency , while CBDC is issued by respective central banks and has equal value to the regular sovereign currency issued by them .
Why Central Banks want to issue CBDC ?
1. Central banks, faced with dwindling usage of paper currency, seek to popularize a more acceptable electronic form of currency (like Sweden);
2 . Jurisdictions with significant physical cash usage seeking to make issuance more efficient (like Denmark, Germany, or Japan or even the US);
3. Central banks seek to meet the public’s need for digital currencies, manifested in the increasing use of private virtual currencies, and thereby avoid the more damaging consequences of such private currencies.
4. CBDCs have clear advantages over other digital payments systems – payments using CBDCs are final and thus reduce settlement risk in the financial system. The need for interbank settlement disappears
Why RBI and other Central Banks mulling over CBDC ?
The advent of private virtual currencies (VCs) may well be another reason why CBDCs might become necessary. It is not clear what specific need is met by these private VCs that official money cannot meet as efficiently, but that may in itself not come in the way of their adoption. If these VCs gain recognition, national currencies with limited convertibility are likely to come under threat. To be sure, freely convertible currencies like the US Dollar may not be affected as most of these VCs are denominated in US Dollar. In fact, these VCs might encourage the use of US Dollar, as has been argued by Randal Quarles3. Developing our own CBDC could provide the public with uses that any private VC can provide and to that extent might retain public preference for the Rupee. It could also protect the public from the abnormal level of volatility some of these VCs experience. Indeed, this could be the key factor nudging central banks from considering CBDCs as a secure and stable form of digital money. As Christine Lagarde, President of the ECB has mentioned in the BIS Annual Report “… central banks have a duty to safeguard people's trust in our money. Central banks must complement their domestic efforts with close cooperation to guide the exploration of central bank digital currencies to identify reliable principles and encourage innovation.”
The effect of CBDC on Banking System :
1. CBDCs, depending on the extent of its use, can cause a reduction in the transaction demand for bank deposits. Since transactions in CBDCs reduce settlement risk as well, they reduce the liquidity needs for settlement of transactions (such as intra-day liquidity). In addition, by providing a genuinely risk-free alternative to bank deposits, they could cause a shift away from bank deposits which in turn might reduce the need for government guarantees on deposits (Dyson and Hodgson, 2016).
2. At the same time reduced disintermediation of banks carries its own risks. If banks begin to lose deposits over time, their ability for credit creation gets constrained. Since central banks cannot provide credit to the private sector, the impact on the role of bank credit needs to be well understood. Plus, as banks lose significant volume of low-cost transaction deposits their interest margin might come under stress leading to an increase in cost of credit. .
3. There is another risk of CBDCs that could be material. Availability of CBDC makes it easy for depositors to withdraw balances if there is stress on any bank. Flight of deposits can be much faster compared to cash withdrawal. On the other hand, just the availability of CBDCs might reduce panic ‘runs’ since depositors have knowledge that they can withdraw quickly. One consequence could be that banks would be motivated to hold a larger level of liquidity which could result in lower returns for commercial banks.
4. In actual fact, notwithstanding the benefits of CBDCs vis-à-vis bank deposits, since CBDCs are currency and therefore do not pay interest, their impact on bank deposits may actually be rather limited. Depositors that require CBDCs for transactional purposes are likely to sweep day end balances to interest-earning deposit accounts.
To read complete speech of Mr T.Ravi Sankar dated 22.07.2021 , CLICK HERE
NO ADDITIONAL KYC REQUIRED FOR CRYPTOCURRENCY TRANSACTIONS : RBI CLARIFIES
Dated 01.06.2021 : It was reported by many newspapers and portals that some banks have warned their clients now against cryptocurrency transactions quoting RBI circular RBI circular DBR.No.BP.BC.104/08.13.102/2017-18 dated April 06, 2018 . The said order has already been set aside by the Supreme court in March 20 . Hence Reserve bank of India has asked banks not to take any action based on the basis of said circular . The clarification confirms that banks cannot restrict the cryptocurrency transactions of their clients on the basis of RBI'S earlier ban .
However Reserve Bank of India has asked Banks to continue to carry out usual customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances. Hence it is clear now that banks cannot prevent Bitcoin transactions in KYC compliant accounts with them .
For RBI Notification dated 31.05.22021 , CLICK HERE
Dated 01.06.2021 : It was reported by many newspapers and portals that some banks have warned their clients now against cryptocurrency transactions quoting RBI circular RBI circular DBR.No.BP.BC.104/08.13.102/2017-18 dated April 06, 2018 . The said order has already been set aside by the Supreme court in March 20 . Hence Reserve bank of India has asked banks not to take any action based on the basis of said circular . The clarification confirms that banks cannot restrict the cryptocurrency transactions of their clients on the basis of RBI'S earlier ban .
However Reserve Bank of India has asked Banks to continue to carry out usual customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances. Hence it is clear now that banks cannot prevent Bitcoin transactions in KYC compliant accounts with them .
For RBI Notification dated 31.05.22021 , CLICK HERE
BITCOIN PRICES AT ALL TIME HIGH
BITCOIN MAKES NEW PEAK AT USD 61,500 :
DATED 14.03.2021 : Bitcoin has crossed USD 60,000 per piece and it's now at around USD 60,780 . During the day Bitcoin reached a new peak of USD 61,556 before retracing to current levels . During 2021 , BTC has more than doubled its value from yearend peak of USD 29,390 . The victory march of Bitcoin is continuing in the month of March also .
The last year (2020 ) had also given a bumper return of more than 300 % to the investors in Bitcoin ( BTC ) as its prices peaked to USD 29,390 . Bitcoin prices were at USD 7,200 in January1st , 2020 .
What a remarkable price journey for a currency which was valued just 0.6 USD per BTC in 2009 when it started trading .
DATED 14.03.2021 : Bitcoin has crossed USD 60,000 per piece and it's now at around USD 60,780 . During the day Bitcoin reached a new peak of USD 61,556 before retracing to current levels . During 2021 , BTC has more than doubled its value from yearend peak of USD 29,390 . The victory march of Bitcoin is continuing in the month of March also .
The last year (2020 ) had also given a bumper return of more than 300 % to the investors in Bitcoin ( BTC ) as its prices peaked to USD 29,390 . Bitcoin prices were at USD 7,200 in January1st , 2020 .
What a remarkable price journey for a currency which was valued just 0.6 USD per BTC in 2009 when it started trading .
BITCOIN AND OTHER CRYPTO CURRENCIES PRICE NOW - BTC TO USD
Cryptocurrency and Bitcoins prices provided by third party provider COINLIB
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LEADING CRYPTOCURRENCY PRICES INCLUDING BITCOIN PRICE IN INDIA CURRENCY INDIAN RUPEES
BITCOIN AND OTHER CRYPTOCURRENCIES PRICES IN INDIAN RUPEES NOW LIVE -BTC TO INR
HAVE OPEN MIND ON CRYPTOCURRENCIES : MOSF GOVERNMENT OF INDIA
Dated 07.03.2021 : While speaking at the Entreprenuers Organisation - Punjab Chapter. yesterday , Mr Anurag Thakur , Minister of State ( Finance ), Government of India has called for evaluation of cryptocurrencies and the other new ideas on the block chain technology with an open mind .
He advised that a High-Level Inter-Ministerial Committee has been constituted and Government would take a decision on the recommendations of the committee and the legislative proposal, if any, would be introduced in the Parliament following the due process .
However he has batted for encouraging the new ideas with open mind . He also told that even PM Narendra Modi is also a strong advocate of embracing technology in various aspects of governance.
Actually the details of the committee report is not made public and market was abuzz with rumours of banning of private cryptocurrencies in India . However the words of the minister indicate that still the government has not decided to curtain down on the cryptocurrencies like Bitcoin and investors in these currencies in India may relax for now .
Source : Twitter account of MOSF
Dated 07.03.2021 : While speaking at the Entreprenuers Organisation - Punjab Chapter. yesterday , Mr Anurag Thakur , Minister of State ( Finance ), Government of India has called for evaluation of cryptocurrencies and the other new ideas on the block chain technology with an open mind .
He advised that a High-Level Inter-Ministerial Committee has been constituted and Government would take a decision on the recommendations of the committee and the legislative proposal, if any, would be introduced in the Parliament following the due process .
However he has batted for encouraging the new ideas with open mind . He also told that even PM Narendra Modi is also a strong advocate of embracing technology in various aspects of governance.
Actually the details of the committee report is not made public and market was abuzz with rumours of banning of private cryptocurrencies in India . However the words of the minister indicate that still the government has not decided to curtain down on the cryptocurrencies like Bitcoin and investors in these currencies in India may relax for now .
Source : Twitter account of MOSF
FUTURE OF BITCOINS IN INDIA
FUTURE OF CRYPTOCURRENCIES IN THE WORLD AND IN INDIA
Dated 21.12.2021 : It's reported that there are more than 3000 cryptocurrencies in the world and the most popular by market cap and price is the Bitcoin ( BTC ) . Many Governments are Central banks are mulling idea of creating their own new cryptocurrencies ( Eg : China , India ) .
The trading in Bitcoins started in 2009 at a nominal price of 1BTC = USD 0.60 . From thereon its prices surged and crashed many times . But it's touching new peaks after falls and have raced to its peak now . In the current surge , the price of Bitcoin is reaching higher and higher day by day , especially from the year 2020 and now the price is at around USD 56,000 per piece . Its market cap has crossed USD 1 trillion .
Once it was thought that Bitcoins were fit for use only for black marketers , illegal traders and black money holders . It was rumoured that Indian black money holders were responsible for surge in BTC prices in 2016 after demonetization of Indian currencies . Initially buying a pizza by paying 10 Bitcoins was an achievement . As cryptocurrencies do not require / have a central authority , many were afraid to deal with them as no one knew whom to approach in case of a problem . Earlier cryptocurrencies were treated as fringe currencies and risky one suitable only for gambling , as their values gyrated up and down .
Now scenario has changed . Now many regular commercial entities have begin to recognize the value of them . Many banks in the world are opening Bitcoin bank accounts 9 Eg : Goldman Sachs , USA , Chime Bank USA , National Bank of Canada Bitcoin debit and credit cards are being issued on Visa Platform . Many commercial entities are like Microsoft , Pizzahut , shopify , Expedia are accepting Bitcoins for their billing payments . Tesla , famous auto maker , has disclosed that they have bought Bitcoins worth USD 1.5 BILLION.
All the developments that have happened in 2020 / 21 in the world are pointing that cryptocurrencies are gaining grounds , respectability and value and they are going to stay . While volatility may still keep safe investors away .
FUTURE OF CRPTOCURRENCIES IN INDIA : While the world is moving with the new forms of virtual currencies , the future of cryptocurrencies in India is uncertain . Already a cryptocurrency bank is opened in India . While Reserve bank of India has announced that they are toying with the idea of own cryptocurrency , government is in the process of forming a new law to deal with them .
With the rumour of banning of existing private cryptocurrencies by the new law gaining grounds , investors are facing doldrums . It's estimated by some in the cryptocurrency business that Indians have invested more than USD 1 Billion in the Bitcoin market . No one is sure whether to hold Bitcoins or not . Investors who have already invested in Bitcoins are worried whether they would be able to encash them in case of banning by the Government . It is now to be seen whether the Government will ban the private cryptocurrencies or allow and regulate the cryptocurrency business and services in India . It is also to be seen how RBI will bring out our own cryptocurrency and with what features , terms & conditions . Hopefully , government will come out with the new bill on crptocurrencies to clear the air about future of bitcoin and other cryptocurrencies in India .
Dated 21.12.2021 : It's reported that there are more than 3000 cryptocurrencies in the world and the most popular by market cap and price is the Bitcoin ( BTC ) . Many Governments are Central banks are mulling idea of creating their own new cryptocurrencies ( Eg : China , India ) .
The trading in Bitcoins started in 2009 at a nominal price of 1BTC = USD 0.60 . From thereon its prices surged and crashed many times . But it's touching new peaks after falls and have raced to its peak now . In the current surge , the price of Bitcoin is reaching higher and higher day by day , especially from the year 2020 and now the price is at around USD 56,000 per piece . Its market cap has crossed USD 1 trillion .
Once it was thought that Bitcoins were fit for use only for black marketers , illegal traders and black money holders . It was rumoured that Indian black money holders were responsible for surge in BTC prices in 2016 after demonetization of Indian currencies . Initially buying a pizza by paying 10 Bitcoins was an achievement . As cryptocurrencies do not require / have a central authority , many were afraid to deal with them as no one knew whom to approach in case of a problem . Earlier cryptocurrencies were treated as fringe currencies and risky one suitable only for gambling , as their values gyrated up and down .
Now scenario has changed . Now many regular commercial entities have begin to recognize the value of them . Many banks in the world are opening Bitcoin bank accounts 9 Eg : Goldman Sachs , USA , Chime Bank USA , National Bank of Canada Bitcoin debit and credit cards are being issued on Visa Platform . Many commercial entities are like Microsoft , Pizzahut , shopify , Expedia are accepting Bitcoins for their billing payments . Tesla , famous auto maker , has disclosed that they have bought Bitcoins worth USD 1.5 BILLION.
All the developments that have happened in 2020 / 21 in the world are pointing that cryptocurrencies are gaining grounds , respectability and value and they are going to stay . While volatility may still keep safe investors away .
FUTURE OF CRPTOCURRENCIES IN INDIA : While the world is moving with the new forms of virtual currencies , the future of cryptocurrencies in India is uncertain . Already a cryptocurrency bank is opened in India . While Reserve bank of India has announced that they are toying with the idea of own cryptocurrency , government is in the process of forming a new law to deal with them .
With the rumour of banning of existing private cryptocurrencies by the new law gaining grounds , investors are facing doldrums . It's estimated by some in the cryptocurrency business that Indians have invested more than USD 1 Billion in the Bitcoin market . No one is sure whether to hold Bitcoins or not . Investors who have already invested in Bitcoins are worried whether they would be able to encash them in case of banning by the Government . It is now to be seen whether the Government will ban the private cryptocurrencies or allow and regulate the cryptocurrency business and services in India . It is also to be seen how RBI will bring out our own cryptocurrency and with what features , terms & conditions . Hopefully , government will come out with the new bill on crptocurrencies to clear the air about future of bitcoin and other cryptocurrencies in India .
INDIA TO BRING FRESH LAW ON CRYPTOCURRENCIES :
Dated 19.02.2021 : In an interview with a journalist yesterday ( of ETV ) , the state Minister for Finance Mr Anurag Thakur informed that Indian Government is in the process of bringing a new bill on cryptocurrencies . He informed that the government had formed an inter-ministerial committee on the issue which has given its report. Thereafter, a group of secretaries in the leadership of cabinet secretary have also submitted its report which will be submitted to the Union cabinet. If the Cabinet approves it then the government may introduce a cryptocurrency bill in the current session of the parliament to enact a law to regulate cryptocurrencies in the country.
Dated 19.02.2021 : In an interview with a journalist yesterday ( of ETV ) , the state Minister for Finance Mr Anurag Thakur informed that Indian Government is in the process of bringing a new bill on cryptocurrencies . He informed that the government had formed an inter-ministerial committee on the issue which has given its report. Thereafter, a group of secretaries in the leadership of cabinet secretary have also submitted its report which will be submitted to the Union cabinet. If the Cabinet approves it then the government may introduce a cryptocurrency bill in the current session of the parliament to enact a law to regulate cryptocurrencies in the country.
INDIA EXPLORING ITS OWN CRYPTOCURRENCY :
Dated 26.01.2021 : Reserve Bank Of India ( RBI ) had in 2018 prohibited all the entities like Banks , NBFCs , Payment Banks , wallets regulated by them to deal with or provide any service related to transactions involving Bitcoins and other cryptocurrencies . However the Supreme court of India , had lifted the ban imposed by Reserve Bank of India in 2020 . Further there is no legal development in India .
Now RBI , in a booklet published on payment systems in India , has advised that it is exploring the possibility as to whether there is a need for a digital version of fiat currency ( cash or Rupee notes ) and in case there is, then how to operationalise it. It has also noted that regulators and governments in India have been sceptical about these currencies and are apprehensive about the associated risks so far .
In case RBI finds and adopts and brings out a new digital currency which can be converted to Indian rupee , it will be saving on printing , storing , transportation and managing notes and coins which is having a sizable cost now . General public may also feel ease in having and using such currencies . While in one hand people will be safe from theft , counting , accounting and managing cash , they have to be careful of cybertheft , hacking , phishing attempts and other crimes connected with cyber world . Password maintenance will be the other headache to be encountered by the public .
We have to wait and see how RBI move takes shape in the future .
To know various alternate payment system available in India , go through the RBI BOOKLET
Dated 26.01.2021 : Reserve Bank Of India ( RBI ) had in 2018 prohibited all the entities like Banks , NBFCs , Payment Banks , wallets regulated by them to deal with or provide any service related to transactions involving Bitcoins and other cryptocurrencies . However the Supreme court of India , had lifted the ban imposed by Reserve Bank of India in 2020 . Further there is no legal development in India .
Now RBI , in a booklet published on payment systems in India , has advised that it is exploring the possibility as to whether there is a need for a digital version of fiat currency ( cash or Rupee notes ) and in case there is, then how to operationalise it. It has also noted that regulators and governments in India have been sceptical about these currencies and are apprehensive about the associated risks so far .
In case RBI finds and adopts and brings out a new digital currency which can be converted to Indian rupee , it will be saving on printing , storing , transportation and managing notes and coins which is having a sizable cost now . General public may also feel ease in having and using such currencies . While in one hand people will be safe from theft , counting , accounting and managing cash , they have to be careful of cybertheft , hacking , phishing attempts and other crimes connected with cyber world . Password maintenance will be the other headache to be encountered by the public .
We have to wait and see how RBI move takes shape in the future .
To know various alternate payment system available in India , go through the RBI BOOKLET
UNICAS , FIRST BITCOIN BANK IN INDIA
FIRST BITCOIN BANK STARTS OPERATION IN INDIA
14.01.2021 : A crypto bank called UNICAS has started its operations in India with physical branches through a joint venture between Cashaa , a London based cryptocurrency platform and United Multistate co-op society , Mumbai based co-operative society . Customers of the bank can open bank accounts, buy and sell cryptocurrencies, obtain crypto-backed loans, as well as learn about crypto. The bank pays interest on the cryptocurrency accounts .
Customers of the bank can also maintain crypto savings accounts with Unicas and get interest in the same cryptocurrency as the deposit. For instance a bitcoin deposit will get interest in bitcoin. For rupee loans against crypto, the cryptocurrency has to be deposited in the wallet as collateral and bank promises the instantaneous approval . The deposit acts as lien in case of default.
It has opened a branch in Jaipur , Rajastan offering cryptocurrency services and said to be the first physical bank branch in the world to offer such services . It is reported that the parent society has more than 56 ,000 customers with 16 branches in Maharashtra , Rajastan , Delhi and Gujarat . Unicas is using the regulatory licences issued to parent co-op society to enter Indian business .
Unicas is offering various cryptocurrencies that include Bitcoin ( BTC) , Ether ( ETC ) , Cashaa ( CAS ) & XRP for savings accounts and loans .
Presently there is a legal vacuum in India with regard to legality of cryptocurrencies , after Supreme Court lifted than earlier ban imposed by RBI . Subsequently no law or order has been passed by the government . One has also have to keep in mind the risks involved in investing including volatility of the market before dealing in cryptocurrencies .
TO visit the website of the bank , CLICK HERE
14.01.2021 : A crypto bank called UNICAS has started its operations in India with physical branches through a joint venture between Cashaa , a London based cryptocurrency platform and United Multistate co-op society , Mumbai based co-operative society . Customers of the bank can open bank accounts, buy and sell cryptocurrencies, obtain crypto-backed loans, as well as learn about crypto. The bank pays interest on the cryptocurrency accounts .
Customers of the bank can also maintain crypto savings accounts with Unicas and get interest in the same cryptocurrency as the deposit. For instance a bitcoin deposit will get interest in bitcoin. For rupee loans against crypto, the cryptocurrency has to be deposited in the wallet as collateral and bank promises the instantaneous approval . The deposit acts as lien in case of default.
It has opened a branch in Jaipur , Rajastan offering cryptocurrency services and said to be the first physical bank branch in the world to offer such services . It is reported that the parent society has more than 56 ,000 customers with 16 branches in Maharashtra , Rajastan , Delhi and Gujarat . Unicas is using the regulatory licences issued to parent co-op society to enter Indian business .
Unicas is offering various cryptocurrencies that include Bitcoin ( BTC) , Ether ( ETC ) , Cashaa ( CAS ) & XRP for savings accounts and loans .
Presently there is a legal vacuum in India with regard to legality of cryptocurrencies , after Supreme Court lifted than earlier ban imposed by RBI . Subsequently no law or order has been passed by the government . One has also have to keep in mind the risks involved in investing including volatility of the market before dealing in cryptocurrencies .
TO visit the website of the bank , CLICK HERE
BITCOIN PRICE IS MARCHING TOWARDS USD 50,000 :
DATED 19.02.2021 : Bitcoin has crossed USD 50,000 per piece and it's now at around USD 51,665 . During the last one month , it has raised from USD 33,000 to this level and it's now crossed USD 50,000 . New peak are reached almost every week during the current year . During 2021 , BTC gained more than 7,000 per BTC in the first week of 2021 from yearend peak of USD 29,390 . The march continued and now it has gained more than 50 % from the last year end price .
The last year (2020 ) had also given a bumper return of more than 300 % to the investors in Bitcoin ( BTC ) as its prices peaked to USD 29,390 . Bitcoin prices were at USD 7,200 in January1st , 2020 .
DATED 19.02.2021 : Bitcoin has crossed USD 50,000 per piece and it's now at around USD 51,665 . During the last one month , it has raised from USD 33,000 to this level and it's now crossed USD 50,000 . New peak are reached almost every week during the current year . During 2021 , BTC gained more than 7,000 per BTC in the first week of 2021 from yearend peak of USD 29,390 . The march continued and now it has gained more than 50 % from the last year end price .
The last year (2020 ) had also given a bumper return of more than 300 % to the investors in Bitcoin ( BTC ) as its prices peaked to USD 29,390 . Bitcoin prices were at USD 7,200 in January1st , 2020 .
BITCOIN PRICE CROSSES USD 37,000 TODAY :
DATED 07.01.2021 : Bitcoin reached new peaks to day and crossed USD 37,000 per BTC . BTC has gained more than 7,000 per BTC in the first week of 2021 from yearend peak of USD 29,390 .
The year 2020 had given a bumper return of more than 300 % to the investors in Bitcoin ( BTC ) as its prices peaked to USD 29,390 . Bitcoin prices were at USD 7,200 in January1st , 2020 .
DATED 07.01.2021 : Bitcoin reached new peaks to day and crossed USD 37,000 per BTC . BTC has gained more than 7,000 per BTC in the first week of 2021 from yearend peak of USD 29,390 .
The year 2020 had given a bumper return of more than 300 % to the investors in Bitcoin ( BTC ) as its prices peaked to USD 29,390 . Bitcoin prices were at USD 7,200 in January1st , 2020 .
BITCOIN PRICES ARE AT HISTORICAL PEAK AND CROSS USD 22,000 :
DATED 17.12.2020 : Today Bitcoin ( BTC ) prices peaked to USD 22,100 AGAINST THE ALL TIME HIGH OF USD 19, 665 . Now ( IST 11.25 AM ) it is trading at USD 22,103 ( INR 16,22, 390 ) . The earlier peak of USD 19,665 was reached in December 2017 and fell to USD 3,194 in December 2018 .
Bitcoin was struggling to break earlier peak for more than a month and finally it has broken the earlier record .
DATED 17.12.2020 : Today Bitcoin ( BTC ) prices peaked to USD 22,100 AGAINST THE ALL TIME HIGH OF USD 19, 665 . Now ( IST 11.25 AM ) it is trading at USD 22,103 ( INR 16,22, 390 ) . The earlier peak of USD 19,665 was reached in December 2017 and fell to USD 3,194 in December 2018 .
Bitcoin was struggling to break earlier peak for more than a month and finally it has broken the earlier record .
WHAT IS BITCOIN ? WHAT IS A CRYPTO CURRENCY ?
To know all about them , CLICK HERE
To know all about them , CLICK HERE
LEGALITY OF TRADING OF BITCOINS IN INDIA . Is Bitcoin trading legal in india ?
SUPREME COURT QUASHES RBI BAN ON BITCOIN TRANSACTIONS
Dated 04.03.2020 : Today , the Supreme court of India , disposing of a writ petition filed by Internet and Mobile Association of India lifted the ban imposed by Reserve Bank of India in 2018 on Bitcoin and other cryptocurrency Trading in India .
RBI had in 2018 prohibited all the entities like Banks , NBFCs , Payment Banks , wallets regulated by them to deal with or provide any service related to transactions involving Bitcoins and other cryptocurrencies .
We have to wait for detailed judgement and revised RBI guidelines in the matter .
Updated dated 29.04.2021 : No guidelines has been issued by RBI so far . A new legislation is said to be under preparation / review by the Government of India . Though there are many rumours , no official announcement is done so far .
Source : Media
Dated 04.03.2020 : Today , the Supreme court of India , disposing of a writ petition filed by Internet and Mobile Association of India lifted the ban imposed by Reserve Bank of India in 2018 on Bitcoin and other cryptocurrency Trading in India .
RBI had in 2018 prohibited all the entities like Banks , NBFCs , Payment Banks , wallets regulated by them to deal with or provide any service related to transactions involving Bitcoins and other cryptocurrencies .
We have to wait for detailed judgement and revised RBI guidelines in the matter .
Updated dated 29.04.2021 : No guidelines has been issued by RBI so far . A new legislation is said to be under preparation / review by the Government of India . Though there are many rumours , no official announcement is done so far .
Source : Media
RESERVE BANK OF INDIA PROHIBITS SERVICE TO BITCOIN TRANSACTIONS BY BANKS AND OTHER REGULATED ENTITIES
Dated 05.04.2018 : Reserve Bank of India today prohibited all the entities like Banks , NBFCs , Payment Banks , wallets regulated by them to deal with or provide any service related to transactions involving Bitcoins and other cryptocurrencies . The ban comes in to effect with immediate effect . All the entities which are providing such facilities have to exit in time bound manner . RBI will issue a circular shortly .
The ban virtually ends any dealing of any cryptocurrency in India as no Indian will be able to buy / sell , make payment or receive payment In India .
However RBI has constituted a internal committee to study feasibility of introduction of its own digital currency . the committee is expected to give its report before June 2018 .
For Press release of RBI dated 05.04.2018 , CLICK HERE
Subsequently RBI has issued Notification on 06.04.2018 , CLICK HERE to read the notification .
Dated 05.04.2018 : Reserve Bank of India today prohibited all the entities like Banks , NBFCs , Payment Banks , wallets regulated by them to deal with or provide any service related to transactions involving Bitcoins and other cryptocurrencies . The ban comes in to effect with immediate effect . All the entities which are providing such facilities have to exit in time bound manner . RBI will issue a circular shortly .
The ban virtually ends any dealing of any cryptocurrency in India as no Indian will be able to buy / sell , make payment or receive payment In India .
However RBI has constituted a internal committee to study feasibility of introduction of its own digital currency . the committee is expected to give its report before June 2018 .
For Press release of RBI dated 05.04.2018 , CLICK HERE
Subsequently RBI has issued Notification on 06.04.2018 , CLICK HERE to read the notification .
HDFC BANK DISALLOWS ITS CARDS FOR PURCHASE OF BITCOINS
Dated 18.03.2018 : It is reported that HDFC Bank , India have informed their customers that they would be no longer able to do the transactions involving cryptocurrencies including Bitcoins using HDFC Bank debit or credit cards . Already in February 2018 Citibank India had stopped allowing its cards for purchase of bitcoins and other cryptocurrencies . In the February 2018 itself , the country's central banker Reserve Bank of India had also warned bank customers in India against investing in Bitcoins and other cryptocurrencies .
Dated 18.03.2018 : It is reported that HDFC Bank , India have informed their customers that they would be no longer able to do the transactions involving cryptocurrencies including Bitcoins using HDFC Bank debit or credit cards . Already in February 2018 Citibank India had stopped allowing its cards for purchase of bitcoins and other cryptocurrencies . In the February 2018 itself , the country's central banker Reserve Bank of India had also warned bank customers in India against investing in Bitcoins and other cryptocurrencies .
BTCXIndia and ethexIndia TO CLOSE OPERATIONS IN INDIA
Dated 02.03.2018 : Cryptocurrency Exchanges BTCXindia and ethexIndia are closing down its operations in India .
In its website , BTCXindia dealing in Ripples ( XRP ) has asked its customers not to make any Indian Rupee or Ripple ( XRP ) deposits with effect from 01.03.2018 . If any remittance is made , it would be automatically returned to the sender bank . Further it has asked all its customers to withdraw all the deposits both in Indian rupee as well as in Ripple ( XRP ) before 4th March , 2018 .
For further details , one may visit official site of BTCXIndia , by CLICKING HERE
Similarly Cryptocurrency Ethereum ( ETH ) Exchange ethexIndia is closing down its operations in India . In its website , it has asked its customers not to make any Indian Rupee or Ethereum ( ETH ) deposits with effect from 01.03.2018 . If any remittance is made , it would be automatically returned to the sender bank . Further it has asked all its customers to withdraw all the deposits both in Indian rupee as well as in Ethereum ( ETH )
For website of ethexIndia CLICK HERE
It is reported that the reason for closure of operations is the budget speech of Mr Arun Jaitley wherein he had advised the intention of government was to outlaw the cryptocurrencies . He had also announced the intention of government to bring suitable amendment to the existing laws to this effect .
Dated 02.03.2018 : Cryptocurrency Exchanges BTCXindia and ethexIndia are closing down its operations in India .
In its website , BTCXindia dealing in Ripples ( XRP ) has asked its customers not to make any Indian Rupee or Ripple ( XRP ) deposits with effect from 01.03.2018 . If any remittance is made , it would be automatically returned to the sender bank . Further it has asked all its customers to withdraw all the deposits both in Indian rupee as well as in Ripple ( XRP ) before 4th March , 2018 .
For further details , one may visit official site of BTCXIndia , by CLICKING HERE
Similarly Cryptocurrency Ethereum ( ETH ) Exchange ethexIndia is closing down its operations in India . In its website , it has asked its customers not to make any Indian Rupee or Ethereum ( ETH ) deposits with effect from 01.03.2018 . If any remittance is made , it would be automatically returned to the sender bank . Further it has asked all its customers to withdraw all the deposits both in Indian rupee as well as in Ethereum ( ETH )
For website of ethexIndia CLICK HERE
It is reported that the reason for closure of operations is the budget speech of Mr Arun Jaitley wherein he had advised the intention of government was to outlaw the cryptocurrencies . He had also announced the intention of government to bring suitable amendment to the existing laws to this effect .
SBI CARD CAUTIONS AGAINST USE OF BITCOINS
Dated 21.02.2018 : Today SBI Card , a division of State Bank of India , advised its customers about the potential economic , operational , financial , legal , customer protection and security related risks associated with use of Bitcoins . However , unlike Citibank , it has not prohibited use of SBI cards for transactions involving cryptocurrencies . But Citibank earlier had informed their customers that they would be no longer able to do the transactions involving cryptocurrencies including Bitcoins using Citibank debit or credit cards . Already Reserve Bank of India has warned bank customers in India against investing in Bitcoins and other
Dated 21.02.2018 : Today SBI Card , a division of State Bank of India , advised its customers about the potential economic , operational , financial , legal , customer protection and security related risks associated with use of Bitcoins . However , unlike Citibank , it has not prohibited use of SBI cards for transactions involving cryptocurrencies . But Citibank earlier had informed their customers that they would be no longer able to do the transactions involving cryptocurrencies including Bitcoins using Citibank debit or credit cards . Already Reserve Bank of India has warned bank customers in India against investing in Bitcoins and other
CITIBANK INDIA DISALLOWS ITS CARDS FOR PURCHASE OF BITCOINS
Dated 13.02.2018 : Today Citibank , India informed its customers that they would be no longer able to do the transactions involving cryptocurrencies including Bitcoins using Citibank debit or credit cards . Citibank has decided not to permit usage of its debit or credit cards for purchase of Bitcoins and other cryptocurrencies , given concerns of potential economic , operational , legal , customer protection and security related risks associated with such transactions. Already Reserve Bank of India has warned bank customers in India against investing in Bitcoins and other cryptocurrencies .
Dated 13.02.2018 : Today Citibank , India informed its customers that they would be no longer able to do the transactions involving cryptocurrencies including Bitcoins using Citibank debit or credit cards . Citibank has decided not to permit usage of its debit or credit cards for purchase of Bitcoins and other cryptocurrencies , given concerns of potential economic , operational , legal , customer protection and security related risks associated with such transactions. Already Reserve Bank of India has warned bank customers in India against investing in Bitcoins and other cryptocurrencies .
INCOME TAX DEPARTMENT SENDS NOTICES TO BITCOIN INVESTORS :
Dated 12.02.2018 : It is reported that Income Tax department has sent more than 1,00,000 notices to the investors of Bitcoins and other cryptocurrencies in India to verify whether they have paid due income tax on the profits made out of Bitcoin transactions and reported the same in their Income tax returns . It is reported that Mr Sushil Chanda , chairman of Central Board of Direct Taxes disclosed the matter whilst speaking in an event organized in New Delhi by ASSOCHAM
Dated 12.02.2018 : It is reported that Income Tax department has sent more than 1,00,000 notices to the investors of Bitcoins and other cryptocurrencies in India to verify whether they have paid due income tax on the profits made out of Bitcoin transactions and reported the same in their Income tax returns . It is reported that Mr Sushil Chanda , chairman of Central Board of Direct Taxes disclosed the matter whilst speaking in an event organized in New Delhi by ASSOCHAM
WORLD BANK CHIEF CALLS BITCOINS A PONZI SCHEME
Dated 08.02.2018 : Newspapers reported that Mr Jim Yong Kim , World Bank Group president told in an event that cryptocurrencies like Bitcoins are ponzi schemes .However world bank is looking in to the blockchain technology which uses distributed ledgers to facilitate secured trading of digital assets . Earlier in the week Mr Agustin Carstens , chief of Bank of International Systems ( BIS ) had asked central banks to rein in cryptocurrencies as they can cause disturbances to the existing financial system .
In the mean time , Bitcoin is trading at around USD 8,000 after falling from life time high of around USD 19,300 in recent weeks .
Dated 08.02.2018 : Newspapers reported that Mr Jim Yong Kim , World Bank Group president told in an event that cryptocurrencies like Bitcoins are ponzi schemes .However world bank is looking in to the blockchain technology which uses distributed ledgers to facilitate secured trading of digital assets . Earlier in the week Mr Agustin Carstens , chief of Bank of International Systems ( BIS ) had asked central banks to rein in cryptocurrencies as they can cause disturbances to the existing financial system .
In the mean time , Bitcoin is trading at around USD 8,000 after falling from life time high of around USD 19,300 in recent weeks .
GOVERNMENT OF INDIA WARNS AGAINST INVESTING IN BITCOINS
Dated 30.12.2017 : Ministry of Finance , Government of India has issued warning people against usage of virtual currencies including Bitcoins , as they are neither currencies nor coins . The statement says virtual currencies are not legal tenders and are not authorized by either Government of India or Reserve Bank of India . The notification lists various risks associated with Bitcoins like volatility , hacking , loss of passwords etc. It compares the operation of Bitcoins to Ponzi schemes and advises the citizens to avoid Bitcoins as they would be participating in BITCOINS at their own risks .
However Ministry of Finance does not say that Bitcoins are illegal in India
Ministry of finance notification on its Facebook page . CLICK HERE
Dated 30.12.2017 : Ministry of Finance , Government of India has issued warning people against usage of virtual currencies including Bitcoins , as they are neither currencies nor coins . The statement says virtual currencies are not legal tenders and are not authorized by either Government of India or Reserve Bank of India . The notification lists various risks associated with Bitcoins like volatility , hacking , loss of passwords etc. It compares the operation of Bitcoins to Ponzi schemes and advises the citizens to avoid Bitcoins as they would be participating in BITCOINS at their own risks .
However Ministry of Finance does not say that Bitcoins are illegal in India
Ministry of finance notification on its Facebook page . CLICK HERE
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RBI CAUTIONS ON BITCOIN USAGE
Reserve bank of India has warned as early as in December 2013 about the risks associated in use of virtual currency including Bitcoins . It has also repeated the message on December 5, 2017 . The major concerns expressed by RBI are
1. VCs are in digital forms and stored in digital wallets . They are prone to hacking , malware , loss of password etc . LOSS OF WALLET MEANS TOTAL LOSS OF ASSET .
2. Payments take place peer to peer basis without intervention of a central agency . No recourse may be available for disputes between the parties .
3. No asset back up for Bitcoin and market prices are speculative . Prices are volatile and volatility may lead to huge losses .
4. Legal status of exchange platforms are not clear and users are exposed to legal and financial risks .
5 . Usage of Bitcoins from the counter party may be for illegal / illicit purpose . Hence usage may unintentionally lead to breach of Anti-money laundering provisions .
For RBI Press release dated 24.12.2013 , CLICK HERE
1. VCs are in digital forms and stored in digital wallets . They are prone to hacking , malware , loss of password etc . LOSS OF WALLET MEANS TOTAL LOSS OF ASSET .
2. Payments take place peer to peer basis without intervention of a central agency . No recourse may be available for disputes between the parties .
3. No asset back up for Bitcoin and market prices are speculative . Prices are volatile and volatility may lead to huge losses .
4. Legal status of exchange platforms are not clear and users are exposed to legal and financial risks .
5 . Usage of Bitcoins from the counter party may be for illegal / illicit purpose . Hence usage may unintentionally lead to breach of Anti-money laundering provisions .
For RBI Press release dated 24.12.2013 , CLICK HERE
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