Ripple suggested a new framework for the regulation of cryptomonies in India in which XRP is the protagonist
The U.S. financial technology firm Bitcoin Revolution proposed a policy framework for the regulation of crypto-currency in India amidst regulatory uncertainty in the country.
In an effort to persuade Indian authorities to support regulation of the growing crypto industry, Ripple issued a policy paper aimed at local lawmakers.
India as a financial potential for cross-border payments and remittances
Published on 18 June, Ripple’s paper offers a series of recommendations for Indian policy makers, providing an overview of the global digital asset landscape and measures for further policy action in the country.
Entitled „The Path Forward for Digital Assets Adoption in India,“ the 36-page document promotes the use of XRP and calls on India to provide regulatory clarity for cryptomonies.
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In the policy paper, Ripple specifically describes the potential of XRP to become a key solution for cross-border payments in India, which is considered the „dominant use case for cross-border payments and remittances“.
Noting that existing methods of cross-border transactions can take up to four to eight days, Ripple says it can handle a transaction from an Uzbek bank to its Indian counterpart „almost in real time,“ and adds:
„This route minimizes the costs, time and risks that prevailing cross-border banking models retain. As a result, many friction points, such as minimum account balances and different time zones, as well as operational and settlement risks, are avoided in cross-border payments with XRP.
In a comparative analysis of the features and performance metrics of XRP with those of other notable digital assets such as Bitcoin (BTC) and Ether (ETH), Ripple described the main benefits of XRP.
Regulatory uncertainty in the country
Ripple’s paper comes amidst regulatory uncertainty for digital assets in India. After the Central Bank of India banned local banks from providing services to crypto-currency companies in 2018, the legal status of these companies was unclear, as the RBI simultaneously stated that there was no ban on crypto-currency in the country.
After the Supreme Court of India lifted the banking ban on the RBI in March 2020, the Ministry of Finance proposed a total restriction on June 12.
India is not the only country that has engaged in regulatory ping pong with the crypto industry. Russia has also offered little certainty for cryptomone-related business, as local authorities still disagree on the legal status of digital assets.
Cointelegraph contacted Ripple to find out if the company plans to help other countries adopt regulation of crypto currency, but has not received a response at the time of this publication.