Categories: Bitcoin In India
June 7, 2018
| On 1 year ago

‘Gracias, no Gracias’- Why India turned down Venezuala’s ‘Petro’ cryptocurrency for oil trade?

By Shalini Singh @Shalini_Singh15

India has clarified its parlance over the cryptocurrency time and again and brushed off all the prospects of legalization of virtual currencies in the near future.

A few days ago, India went a step further and sent the world a clear message of being in no mood of indulging in a crypto trade with any country by turning down Venezuela’s offer of trading in cryptocurrency.

Sushma Swaraj explained, “We cannot have any trade in digital currencies because the Reserve Bank of India has banned it. Now we will try to find an alternate and see which medium we can use for trade.”

She further highlighted that India doesn’t plan to use Venezuela’s ‘petro’ cryptocurrency for paying for crude oil imports from the Latin American nation of which it is a regular customer.

Venezuela proposal for enticing India:

The United States President Donald Trump imposed financial sanctions against Venezuela in August 2017 raising its concern over President Nicolas Maduro’s idea of rewriting the constitution.

With Venezuela suffering one of the worst economic collapses of modern times, the beleaguered administration became the first country to declare a cryptocurrency as their primary currency to deal with inflation.

Last month, it offered discounts of up to 30 percent if India agreed to pay El Petro cryptocurrency. But India refused to be lured by the world’s top oil producer.

India’s Central Bank adopts a rigid stance against the Cryptocurrencies:

On 5 April the RBI issued a notice directing all lenders suggesting them to refrain from all sorts of crypto exchange and close up the bank accounts under their purview that belonged to cryptocurrency exchanges.

However, the cryptocurrency trading institutions have decided to take RBI to the court and the next hearing at the Supreme Court has been scheduled for 20 July.

In the last hearing, Supreme Court suggested the crypto exchanges to directly engage with the RBI to make their case.

Perhaps, Cryptocurrencies will have to wait longer for receiving an embrace from India!

Shalini Singh @Shalini_Singh15

A Writer | A Reader | Above all- A Human Being constantly looking forward to pushing the envelopes!

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