Ripple, a crypto and fintech ‘heavy weight’ and one of the major players in the cryptocurrency industry in India has reportedly expressed optimism about the possible reversal of a ban on some of the operations of cryptocurrency companies. It may be recalled that in April this year, the India`s central bank imposed a ban preventing banks and other banking institutions from providing services to cryptocurrency companies and exchanges.
There are however indications of the possible imminent reversal of this ban, following a pro-cryptocurrency report issued recently by a government-constituted panel that was mandated to conduct a study on cryptocurrency policy. Prior to the imposition of the ban, no studies, consultations or research on cryptocurrency was carried out, the central bank has admitted.
Ripple has noted that it is unperturbed about the attempt by India`s central bank to restrict banks from dealing with cryptocurrencies and is expectant of the formulation of new regulations that will ultimately replace the ban. Reports trickling in from the Times of India (TOI), noted for being India`s largest English-speaking media house/news daily suggests that Ripple has its hope hinged on the international regulations for the banking sector (Basel 3 norms) coupled with the earlier mention pro-cryptocurrency report recently released, hopeful that these will ultimately result in the establishment of a new regulatory framework for the cryptocurrency industry in India.
Ripple is determined to facilitate international and domestic payments of fiat currencies as against being bent on replacing them. It is hoped that such a move will meet with some approval from the Indian authorities”, Dilip Rao, Ripple`s global head of infrastructure innovation has said.
Ripple is one of the few crypto companies that appears to be thriving in India, despite the current ban. Major Indian banks are currently using Ripple`s blockchain technology (RippleNet) for cross-border remittances annually which is reported to be the world’s largest remittance receiver with over $70 billion in corporate and retail remittances annually. Aside RippleNet, Ripple has on offer xRapid, a blockchain platform intended for banks and powered by XRP.
Rao, the senior Ripple executive asserts that central banks have a lot to benefit from Ripple`s blockchain technology solutions that can well serve as backup to conventional payments systems that could fall victim to cyber-attacks. He noted, as cited by TOI: “There is a great regulatory comfort with RippleNet – particularly in the light of the Bank for International Settlements’ policy requiring central banks to have a backup for payment systems having non-similar technology.”
Ripple is seeking to influence the central bank to consider the adoption of RippleNet. Should that result in the banks adoption of Ripple, it will be the newest addition to well over 100 financial institutions that are currently on the RippleNet platform.
Thanks for dropping by. Kindly share this post with your contacts. And visit this site more often for credible, juicy and up-to-date cryptocurrency news and a multiplicity of high value content.
Image from Alamy.