Banks Will Now Be Able To Service Cryptocurrency and Blockchain Firms

By siliconindia  |  Tuesday, 09 June 2020, 10:56:12 AM IST

Banks Will Now Be Able To Service Cryptocurrency and Blockchain Firms

The great news has been rolled out for the cryptocurrency lovers that the Supreme Court of India has directed the Reserve Bank of India to serve them too without any distinguishing. Until now there was no legal standing for crypto trading in the world’s most populated country.

Bitcoin since its first induction in 2009 as a peer to peer cashless digital transaction hasn’t been warmly welcomed by the financial authorities. They lack effective control measures over this as the Blockchain network is a decentralized one and involves no third parties to complete transactions.

The court recognized that if timely regulations don’t take place, the matter would be completely out of the hands as the global investors are rethinking their medium of investments. The economic crisis caused by the COVID-19 has forced people to think out of the box and make themselves even more financially secure.

Cryptocurrency should be recognized as a good or commodity other than being a currency that would be directly in conflict with the traditional currencies. It is taken as a measure that the money is retained through the ownership of cryptocurrencies. It has been a great sigh of relief for the ones who have been involved within this domain and things look to move in a positive direction.

Challenges and Opportunities with Digital Currencies

It has been a hot topic since last year and was at the helm of discussion during the World Economic Forum Summit Jan 2020. The global technology and economic experts are aggressively thinking to move towards digital currencies and how it can be sustainable for governments around the world.

The challenges posed are same as the world faces them. This is a completely decentralized network where third parties interference is minimum. Each of the digital asset owners can carry out transactions that are quite a surmount to trace. Even these are not reversible so it presents quite a rigid solution.

Also, it is a virtual currency concept where strong reliance is on powerful computer networks and algorithms. The technology adoption and appropriate training need to take place for the masses so that they can become part of a digital economy.

When considering opportunities, serious economic potential unlocks with powerful cryptocurrencies like Bitcoin. Applications like bitcoin up trading robot are now rolled in where the scalability of trading has been truly unlocked. Algorithms and machine learning has become so powerful that they can earn profits on their own by carrying out transactions on behalf of the owners.

Blockchain also presents vast networking and huge databases solution where processing speeds are remarkable. India needs this desperately to be able to improve their governance as it is massively populated. India has initiated its National Blockchain Strategy Roadmap where it will gradually move towards this.

The decision of the Supreme Court is quite welcoming and it can lead to unlocking serious growth opportunities. The Policymakers need to put their heads together and let the Indian people make the most out of this with the right set of regulations in place.

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