The news of Indian government considering to allow crypto trade with riders in place has made its way to other countries as well. And the first major reaction on this news tip is coming from Ripple. According to a recent report published by Times of India Ripple hopes that Indian government will rescind its banking ban from cryptocurrencies altogether and allow crypto trading soon.
The optimistic comments came from Ripple’s Global Head of Infrastructure Innovation Mr. Dilip Rao. Mr. Rao told ToI that Ripple is betting on Basel 3 Norms and recent report of government panel to see a good life ahead of RBI’s existing ban. Not only he expects cryptocurrencies to be allowed in the country with regulations but also he expects the existing banking ban to be scrapped.
It’s worth noting that RBI recently made the confession in an RTI that it had not conducted any research before imposing its banking ban on cryptocurrencies. This kind of step is unexpected from any central bank in the world. And then next day came the news that cryptocurrencies may be allowed with riders in place.
But Ripple’s Infrastructure Innovation head didn’t only comment on future of cryptocurrencies in India. He also explained why Ripple is an important innovation for any country in the world. He said:
“Unlike Bitcoin and cryptocurrencies, XRP — the digital currency created by Ripple — is designed to enable remittance of fiat currency and not to replace it. There is a great regulatory comfort with Ripple Net — 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. Even from a geopolitical point of view, countries are having concerns over the existing cross-border payment systems, which can be switched off with a turn of the switch.”
Ripple already has an office in Mumbai, which was opened last year with former Citibanker Navin Gupta in charge of it. Ripple has also successfully roped in Saudi Arabia’s central bank among 100 financial institutions on RippleNet, so hopefully it would want to do the same with RBI as well. However, it remains to be seen whether it will be successful in achieving that or not. For now company has partnered with Axis Bank and IndusInd Bank to provide its technology for international payments.