In a strange-but-progressive turn of events, India’s Supreme Court has overturned the nationwide ban of cryptocurrencies. However, this decision leaves the country without a proper framework for regulating and governing these digital assets.
India’s Reserve Bank denies that there was ever a ban in to begin with. But they recognize that the uncertainty surrounding digital assets made member banks fearful in partnering with companies in the industry.
However, this decision by the Supreme Court might be an even more contentious position for digital assets in India. Ripple Labs has offered to step in and offer a framework for regulation by publishing a whitepaper outlining the legalities.
This comes at the same time as the news that India’s cabinet is considering a true all-around ban on cryptocurrencies.
Although after such a monumental decision, it seems unlikely that the cabinet would make such a decision without some reasons grounded in legitimate concerns – especially with the willingness of Ripple labs to assist with implementation.
According to a report from Business Insider, Ripple’s Managing Director for southeast Asia and the MENA regions, Navin Gupta said, “Now is the time for India policymakers to take the forward-looking approach that many other jurisdictions in Asia, such as Singapore and Japan, have taken. Responsible usage of blockchain technology and digital assets can introduce tremendous potential to the Indian economy.”
If implemented and integrated successfully, India could be a significant model to other developing countries that hope to one day break the bonds of traditional banking and put financial power in the hands of the people.