Bitcoin’s price is enjoying a healthy, $300 spike. After yesterday’s price of $6,600, bitcoin is now trading at a solid $6,900.
One reason for the jump may stem from new details regarding India’s stance on cryptocurrencies. Over the past few days, several sources have reported that India was entertaining a permanent ban on bitcoin and other digital currencies so it could focus on creating a national cryptocurrency for users to enjoy. This sent bitcoin into a long spiral, and the news was widely blamed for the currency’s drastic fall.
We have since learned that this report wasn’t entirely true – that India is not banning cryptocurrencies, but it is making them somewhat harder to use.
The issue arises from the Reserve Bank of India (RBI), which explained in a statement that it was cutting off all relations with digital asset companies, and that all other banks would do the same. Currently, all banks fall under RBI’s regulations, which means businesses that deal in cryptocurrencies can no longer rely on Indian banks to officiate or complete transactions. It’s an unfortunate move, but not the solid blockade so many sources originally claimed.
RBI is a governing bank body, but it is not a legislative body. For a permanent ban on crypto to occur in India, an order must come from either the state or central government, or from the country’s judicial branch. RBI does not fall into either of these areas, meaning only banks are prevented from dealing in crypto. Businesses and individuals can trade it or use it all they want – they just need to find other platforms to rely on when it comes to finalizing financial transfers and trades.
While this is harsh news, it is also good news in a way. It means that while certain boundaries and barricades have been set in place, the war on bitcoin has not reached full-scale levels. Cryptocurrency still has a solid presence in India – the country accounts for nearly 10 percent of the world’s crypto trades – and the government has not responded to a Supreme Court order requesting information on what it plans to do regarding crypto regulation in the future, so everyone can probably ease up a bit for the time being. Bitcoin and its crypto-cousins aren’t going anywhere – at least for now – and trading can continue as normal.
In addition to this, another source claims that cryptocurrency adoption amongst retailers in both the U.S. and Canada is growing steadily despite the ongoing price fluctuations and crypto’s volatility. The price swings of bitcoin and related altcoins make it very difficult for stores and seller outlets to accept them, but since the beginning of the year, we have seen many major chains, including Seattle-based coffee giant Starbucks, show signs of acceptance towards bitcoin, and granted these trends continue and cryptocurrency reaches new territory in its journey towards becoming a mainstream financial asset, we are likely to see the technology behind it improve, and the price incur further (and lasting) boosts.
At press time, bitcoin has grown by roughly four percent over the last 24 hours, and the cryptocurrency market has added nearly $20 billion to its overall total.
Charts by TradingView