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McAfee Calls for Boycott of Reserve Bank of India Linked Institutions

McAfee Calls for Boycott of Reserve Bank of India Linked Institutions

The Reserve Bank of India (RBI) April moratorium on the country’s banks with cryptocurrency linkages has finally had a sharp reaction from cryptocurrency evangelist, John McAfee.  The window-period for banking principals to exit the cryptocurrency environment came to an end on July 5. However, the status quo of the policy is to be maintained, since the cryptocurrency community has challenged this regulatory rule in the high court. The verdict is expected on July 20, 2018.

McAfee via a tweet that made headlines in the crypto industry strongly opposed the Indian Central Bank’s discriminatory policy. He asked community members to end business transactions with any organization or company which was affiliated to the RBI. His current call for action comes on the bank of an April dictum by the Reserve Bank to stop all types of cryptocurrency transactions.

McAfee tweeted, “The Reserve Bank of India (RBI) initiated this atrocity out of fear and won through the existing centralized power structure. I’m calling for a boycott of any financial institution that does business with RBI. We must stand together and act.”

RBI policy

Earlier, in the month of April, the RBI had issued a directive to its member banks to desist from involving their transaction in the lucrative cryptocurrency market. The evangelist of virtual currencies, McAfee has called out to community members to oppose the He is now a well-known and vociferous promoter of cryptocurrency technology. In his initial days in the technology industry, he founded the iconic antivirus software company McAfee Inc. He airs his views on the adoption of crypto technology on public forums and is known to tweet in response to policies, practices and industry news infamously.

The clarion call by crypto promoter has already been implemented in the Indian market with many of the RBI affiliated businesses opting for alternative transactional processes. One of the many options that entities such as WazirX have explored is Peer-to-Peer transfers.

This method effectively allows business transaction as usual, since the central bank affiliates are automatically excluded from the setup. This method has allowed users to buy and sell crypto in rupees directly.  WazirX is not the only exchange which has explored this efficient system, which outsmarted the regulatory authorities’ compliance rules. Another key exchange in the Indian cryptocurrency world, Coindelta, which operates in Pune is also known to have successfully adopted the P2P platform.

Strong-worded opposition

The Indian regulator has been undecided in its policy on cryptocurrency in the past. In its initial phase of development, the use of alternate coins was not official opposed. This silent acquiescence by RBI allowed the mushrooming of several ICOs and exchanges. However, with the speculation in cryptocurrencies occurring at abnormal rates, the regulator has stepped into action.

At the start of the new fiscal, a series of policy changes in the use of cryptocurrencies has not been well accepted by the cryptocurrency community both in India and overseas as well. In markets where cryptocurrencies have reached a stage of maturity, virtual currencies are positively regulated, allowing these virtual assets to achieve growth momentum. However, that is not the case in India, as RBI has clamped down on cryptocurrency transactions with its affiliated banking systems.

About the author

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Eleni Steinman

Eleni worked as a business consultant in Yale. She believes that new technologies have tremendous impact on everyone’s life and poses big opportunities for businesses. She got into cryptocurrencies soon after Ethereum showcased various applications of blockchain.

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