The Indian economy today is not running parallel with the contemporary market choices especially where the acceptance of the flourishing cashless, virtual cryptocurrency is concerned.
The virtual crypto coins that are safe to buy, sell, and spend through the internet, and easy to keep is not being welcomed by the Indian economy with open arms. The cryptocurrencies have made a niche for themselves in the world market and have been accepted in some other prominent countries as Prague within the Czech Republic; Buenos Aires- the capital of Argentina, San Francisco, Madrid in Spain and New York City in the U.S.
The RBI on 6th April through a circular forced the exchanges to shut-down any fiat to cryptocurrency transactions in India, and on the other hand cryptocurrency exchanges have started trading in peer-to-peer (P2P). Loop, a trading platform, is the latest P2P addition by Koinex for the Indian investors.
Today, amongst the most demanded cryptocurrencies, the Bitcoin, takes the lead with $10 billion current market worth, followed by the cryptocurrency Ether of the Ethereum platform capable of executing peer-to-peer smart contacts. It allows coding and endorsing of contracts by people without a third party involvement; Litecoin falls third in the list with a market cap of roughly $180 million and it can be used as a currency, be mined and used for transactions; Monero stands at the fourth place with its secure private and untraceable feature as with the ring signature technology; and Ripple with $243 million market cap stands at the fifth spot. The Ripple currency (XRP) comes with the Ripple system and has integrated into a few payment systems and banks, to reduce costs.
In spite of these advancements, there are cases pending to be heard by the Supreme Court, some against and others in favor of cryptocurrency. As reported in Bitcoin Exchange Guide, the last three-bench hearing which was headed by Subhash Chandra Garg Supreme Court was held on July 20th and has been set to be concluded on 9/11 (September 11) with Reserve Bank of India wanting to ban cryptocurrency use in the country to minimize any illegal transaction that may affect the flow of international finances.
RBI defended itself saying that the circular was issued as a precautionary step until the regulation of cryptocurrency. Also, RBI vocalized its take on the matter saying that cryptocurrency being “a stateless digital currency” would only welcome illegal dealings as it was beyond government interference. Similarly, the SBI is also against the use of cryptocurrency.
The RBI – the central bank of India changed its take from April when it announced that it will not give any services to businesses or individuals dealing with cryptocurrencies and issued circular to all exchanges to follow the order.
The RBI on July 21 told Supreme Court that it felt that it was necessary to regulate cryptocurrency to keep a check on the possibility of any illegal transaction which may affect the flow of international funds, as stated by Financial Express. Shyam Divan, senior advocate of RBI, told Chief Justice Dipak Misra’s bench that it was mandatory to regulate Bitcoin and other cryptocurrencies as they were means for illegal transactions otherwise.
Another petition filed by father and son duo – Siddharth and Vijay Dalmia, asked to hold back the sale, purchase of illegal cryptocurrencies which may be used for illegal activities as funding terrorism and rebellion as noted by The Hindu. Bitcoin News stated that the petition was heard by Supreme Court last November and RBI amongst other government departments were issued notices. When the RBI showed negligence and said that people had been informed on the usage of cryptocurrency, another petition was filed pointing at lack of adequate efforts being made by the central bank.
The fate of Indian economy is at the decisive curve of juncture where this decision can can make or break traders’ virtues. Cointelegraph reported that by an anonymous source in the government has mentioned that the cryptocurrency may be put as a commodity instead of banning them from the system.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]