Renowned fintech firm Ripple has proposed a regulatory framework for regulating cryptocurrencies within India amid the ongoing native crypto uncertainty.
In an attempt to influence Indian authorities to support fintech regulation and therefore the growing cryptocurrency industry, Ripple issued a policy paper addressed to the native legislators.
India as a dominant use-case for cross-border payments and remittances
Published on 18th June, Ripple’s policy paper offers variety of recommendations for the Indian law-makers, offering a summary of the world-wide digital assets landscape and measures to adopt a new crypto currency policy within the country.
Titled “The Path Forward for Digital Assets Adoption in India,” the 36 paged document promotes Ripple [XRP] and calls on India to provide some certainty for regulatory clarity of cryptocurrencies in the country.
Within the policy paper, Ripple explains XRP’s potential to become a one solution for cross-border payments within India, which is taken into account to be the “dominant use-case for cross-border payments and remittances.”
While highlighting that existing methods of cross-border transactions can take more than 4 to 8 days, Ripple added that it can handle a transaction from an Uzbek bank to its Indian counterpart “at nearly in-real time,” while explaining further, it said:
“This route minimizes costs, time and risks that the prevalent models of cross-border banking retain. As a corollary, many friction points like min. account balances as well as different time zones as also operational and settlement risks, are avoided in cross-border payments employing XRP.”
In a comparative summary of XRP’s characteristics and performance metrics to those of other notable digital assets along with Bitcoin [BTC] & Ethereum [ETH], Ripple [XRP] outlined the main benefits of choosing XRP.
India & Crypto Regulation’s Uncertainty
Ripple’s recently submitted cryptocurrency policy paper comes amid long-running uncertainty for digital assets within the country. After India’s financial institution banned local banks from servicing crypto firms earlier in 2018, the status of crypto was unclear as the Reserve Bank of India simultaneously claimed that there was no prohibition on crypto within the country.
After India’s Supreme Court lifted the RBI banking ban later in March 2020, the Ministry of Finance reportedly proposed a blanket moratorium on 12th June.
India isn’t the sole country that has been engaged in “regulatory ping pong” with the cryptocurrencies. Russia has also offered little certainty for crypto-related business as native authorities still disagree on the status of digital assets.
Fight Between Ripple & Tether
Ripple is approaching the Indian market as XRP is beat out by Tether [USDT].
Ripple’s proposal for cryptocurrency regulation in India comes soon after XRP lost its long-running position of the 3rd largest cryptocurrency by total market capitalisation . As reported earlier on 25th May, leading stablecoin Tether [USDT] moved out XRP to gain the 3rd position as largest crypto asset by market capitalisation.