While the regulatory status of Bitcoin and other cryptocurrencies largely remains unclear in India, a new development in the South Asian country perhaps highlights why legalizing the new form of money could be in the best interest of citizens.
According to the Economic Times, the Reserve Bank of India (RBI) decided today to raise the withdrawal limit for customers of Punjab & Maharashtra Cooperative (PMC) Bank from Rs 1,000 ($14) to Rs 10,000 ($141).
The move was reportedly a reversal of a decision announced on Tuesday by the apex bank in a bid to penalize PMC Bank for irregularities in reporting its financial operations over some time.
As part of that punishment, the RBI barred the bank from carrying out its routine activities while introducing a $14 withdrawal limit for customers of the bank who have nothing to do with instigating the current crisis.
The protest that followed at the several branches of the bank nationwide showed customers sheer dissatisfaction with the limit place on access to their money, forcing the RBI to raise the withdrawal limit to a mere $141.
While the apex bank argued that the new limit allows ‘more than 60% of the depositors of [PMC] Bank to withdraw their entire account balance,’ the current scenario brings to the limelight, an age-long flaw with the legacy banking system and why cryptocurrencies like Bitcoin present a viable alternative for citizens.
Being able to store and move money across borders without censorship, and not having to protest perhaps under unfavorable weather conditions to gain access to funds is one of the fundamental reasons why Bitcoin has gained mainstream acceptance in its one decade of existence.
If Indian authorities decide favorably in the reported ongoing rumble on whether or not to ban cryptocurrency usage in the country, then maybe citizens could get access to censorship-free money and not be indirectly punished for an offense they didn’t commit.
Meanwhile, Coinfomania reported in a similar development that Argentina imposed a $10,000 individual capital control measure, to bar citizens from accessing large amounts of foreign currency over a specified period.