In a report last June 15 from the Times of India, it appears that Ripple is expecting a possibly positive regulatory framework from the Reserve Bank of India (RBI).
Ripple’s global head of infrastructure innovation, Dilip Rao said despite the controversial RBI ban on domestic banks dealing with crypto, the RBI’s interest in issuing its own CBDC may suggest a reversal of the policy in the future, saying that:
“There is a great regulatory comfort with Ripple Net — particularly in the light of the Bank for International Settlements’ policy requiring central banks to have a backup for payment systems having non-similar technology.”
Ripple reportedly started an office in Mumbai last year, and Rao says that countries without a developed interbank network would be more receptive to crypto-based alternative Real Time Gross Settlement (RTGS) system.
The RBI ban has led to multiple court cases that have reached the Supreme Court, in response to an increasingly stifling regulatory climate for crypto businesses. Some have argued that the RBI’s ban is violating the country’s constitution.
Last May, the Indian Supreme Court ruled to block further petitions against the BRI ban until the next scheduled hearing date on July 20, 2018.
Tim Draper himself warned that the ban from the RBI would cause a brain drain in India, with Indian crypto and blockchain entrepreneurs taking their businesses overseas due to restrictive regulations in their home country. While Draper showed support for Prime Minister Narendra Modi’s campaign against corruption, he called the government position against crypto an enormous mistake.
At the start of January, India’s Ministry of Finance also took a hard-line stance against cryptocurrencies, calling them a “Ponzi scheme” without “intrinsic value.”