Facebook can bypass the Indian central bank encryption ban, indicating that its currency is only points

Facebook can bypass the Indian central bank encryption ban, indicating that its currency is only points

Although Facebook has not commented on outside reports so far, according to Bloomberg reports, the social media giant’s stable currency will be a cryptocurrency anchored with the US dollar or other “basket” of currencies. I hope that in this way, the value will not be too volatile. If all goes well, Facebook will use the stable currency for cross-border money transfer transactions on its instant messaging app WhatsApp, and India will become the “testing ground” for Facebook to test this latest product.

It is undeniable that, considering the size and size of Facebook, Libra is enough to cause the entire encrypted "galaxies" to vibrate.

However, the Indian encryption circle looks rather calm. They think that the only benefit of Facebook's move is to make the digital currency legal in the local area, and if it really wants to start the test, Facebook may bypass the banned tradition issued by the Bank of India. Bank channels deal with the ban on digital currency transactions. In addition, Facebook's cryptocurrency peer-to-peer transactions are expected to be different from other Bitcoin transactions, as the Libra cryptocurrency program may not require bank transfers to buy or sell digital currencies, so there is no ban on encryption by the Bank of India. influence.

Nischal Shetty, founder of WazirX, a cryptocurrency trading platform, said:

“If Facebook's stable currency becomes a reality, it will definitely change the entire industry… If Facebook's cryptocurrency only works within its internal platform, they don't have to worry about the central bank's ban because there is currently no law prohibiting user exchanges within the platform. Value, including the exchange of value in the form of tokens."

In India, as long as P2P digital token transactions do not pass through the banking system, they are not affected by the central bank ban. Not only that, India has not enacted any laws prohibiting users on the platform from exchanging digital tokens, so Facebook is likely to initially run trial runs within the scope of this rule.
However, regulation remains an obstacle to Facebook's cryptocurrency.

Nitin Sharma, founder of Incrypt Blockchain, believes that if Facebook cryptocurrency projects are to be deployed on a large scale in India, regulation is still an obstacle they can't do, because as local users continue to grow, they have to solve Facebook Coin and Indian legal tender. The exchange problem between the rupees, and this certainly requires regulatory intervention.

Also thought that there is a need to be cautious about Facebook's cryptocurrency, the Indian cryptocurrency company RupeeCoin, which specializes in providing blockchain digital currency anchored with the Indian Rupee in Southeast Asia, which they believe is due to Facebook's performance in information management. Not very good, and the lack of proper rules in the Indian government, the deployment of Facebook cryptocurrencies may need to be carefully considered.

Nitin Sharma added that if Facebook's goal is to shift from an ad-driven business model to a cryptocurrency-driven business model, and to motivate users to participate and promote decentralized identity through cryptocurrencies, then all parties (including users, developers) are definitely needed. People, businesses, advertisers, etc.) seamlessly connect between the legal currency rupee and the Facebook stable currency. In this case, the current legal rules are not conducive to Facebook's large-scale deployment of encryption-stabilized currency projects in India.

But the problem is that if Facebook chooses to transfer and exchange only on its internal platform in order to bypass the Indian central bank's encryption ban, it seems to violate their original intention to introduce cryptocurrency. Because if Facebook Coin can't flow out of the system and only circulates in a closed loop, it's almost the same as a traditional loyalty point system—people can use this cryptocurrency to get services on Facebook or spend it on the Facebook system. Or redeem merchandise through a partner merchant.

As Shank N, a bitcoin trader from Chennai, said, Facebook cryptocurrencies may not have a decentralized trading structure.

Transfer from: Planet Daily