If you keep an eye on news related to cryptocurrencies, you must be hearing some “too good to be true” things since morning. You might’ve read/heard about the news that RBI is planning to take a u-turn on cryptocurrencies. That story originated from a report published by ETNow, and it’s an example of journalism at its best. Before you get too excited, we would like to debunk the myth for you: there’s no u-turn from RBI! And it’s safe to assume that there won’t be one in future too. You want to know why? Read on then.
The “U-Turn” That Would Never Be One
First of all, if ETNow’s report indeed has some substance, this is a really great news for everyone. May their words come true. It’ll be a positive development not only for Indian crypto market but also for global crypto market. However, to call it a “U-Turn” so soon is not accurate in our opinion. There’re several reasons behind it, and let me explain them to you in a brief manner.
RBI Never Called Cryptocurrencies Illegal
The first thing that everyone should keep in mind is that RBI never termed cryptocurrencies “illegal”. It issued “n” number of advisories and warnings against cryptocurrencies, called them out for supporting illegal activities and condemned their decentralized structure. However, it never said that cryptocurrencies are illegal and they’ll be banned. Neither did it proceed towards shutting down the cryptocurrency exchanges operating inside the country. It just warned people as much as it wanted to, which is what any central bank would do to discourage the citizens of its country from losing their hard earned money.
Yes, things went a bit too ahead when RBI put a banking blockade in place for cryptocurrency companies, but even after the banking ban it never termed cryptocurrencies illegal. Therefore, we can’t say that RBI is taking a u-turn on cryptocurrencies. Had RBI called cryptos illegal even once or banned the crypto exchanges operating inside the country, this would have been a u-turn. But since neither of these things happened, it’s not a significant departure from Central bank’s original position. It may seem weird, but that’s how policymakers work.
And sadly, that’s also how mainstream media works. By making sensation out of every possible thing on Earth.
ETNow Report Based on Unknown Sources
Secondly, the tweet published by ETNow is based on info provided by some unknown sources. The validity of claims in their article has not been verified, so frankly speaking we can’t say as of now whether this thing is even going to happen or not.
SOURCES | Govt panel not in favour of banning cryptocurrency. Govt panel may suggest allowing cryptocurrency with riders: Cogencis pic.twitter.com/osP6ziwGbO
— ET NOW (@ETNOWlive) 13 June 2018
As we can see, the source quoted by ETNOW here is a news aggregator called “Cogencis” which is a strange choice for a source. Crypto-News India tried digging into this news aggregator for the original source of this information, but couldn’t find any.
RBI May Allow Crypto Trading Without Lifting The Banking Ban
And finally, even if RBI allows cryptocurrency trading with riders… it may still keep the banking blockade in place. There’re many ways to do so. For example, it may allow only crypto-to-crypto trading, or it may formulate some other methods to facilitate crypto-fiat trading without requiring banks to be involved. There’re no specific details regarding what would RBI do in article published by ETNow, so it will be too early to reach any conclusions.
As you can see, even if RBI allows cryptocurrency trading, it won’t necessarily be a u-turn. It may be considered a u-turn only when RBI also opens the doors of banks to crypto traders and companies. Anything less than that can’t be called a u-turn.