Facebook’s crypto stable coin project code-named Libra is speculated to test run the project in India, many Bitcoin and crypto proponents in the country believe that the project might bypass strict crypto regulations in the country. The Reserve Bank of India last year released a circular stating a complete banking ban on crypto. Since Facebook’s project might not need banking services, the test run might commence without any government’s interference.
Many founders of the crypto startups in the country believe that Facebook’s peer-to-peer network wouldn’t really require the banking system for buying or selling the digital asset. This might be the reason for the social media giants to turn towards India to test its crypto project, despite knowing the state of crypto regulations in the country.
The banking ban on crypto in India has often been misinterpreted as the blanket ban in many sections of the media, leading to chaos and ill-information in society. Another reason for Facebook to choose India for testing of the stable coin could be the millions of active users that the social media has in the country, and an increased internet and social media presence of India’s population in last 4 years.
Nischal Shetty, founder of cryptocurrency exchange platform WazirX explained why Facebook might not have any showdown with the authorities over their test run for their crypto project, he explained
“If this (Facebook’s stable coin) becomes a reality it will change the entire crypto industry… Facebook may not have to worry if the currency operates within their platforms, There isn’t a law which prevents users within a platform from exchanging value, for example, in the form tokens, between each other.”
The RBI is actually bullish about the underlying technology of crypto i.e blockchain and DLT and has even started a sandbox programme for the same. However, the passive stance towards crypto use along with the banking ban has made many crypto startups and exchanges in the country to shut their operation, as it was getting increasingly difficult for them to avail banking services to the customers.