Cryptocurrency : the strife of RBI continues
The suspicion towards virtual currency from the third world countries is no secret. That is to say, the developing countries have a lot of cause to be suspicious, if not about crypto currency itself, but more about the manner in which it would affect the various sectors of the developing countries. Crypto currency has features which might lead to an increased amount of money laundering, moreover, tax evasion as far as the developing countries and their decision to overcome the deficits they are facing right now is concerned. These deficits could not be dealt with if tax evasion is not dealt with. In these circumstances, a lot of developing nations have decided to stay away from crypto currency and its effects.
Just like the other developing countries, the strife is going on in India as well. RBI has expressed some more views about crypto currency in this ongoing battle between crypto currency dealers and RBI I the Supreme Court. The Reserve Bank of India has stated in the Supreme Court that allowing the crypto currency transaction in India would lead to a lot of illegal dealings in the country; Reserve Bank of India has also gone onto mention in the court that it has sent around a circular warning against the transactions by banks and different crypto currencies. The Reserve Bank of India has also stated that crypto currency do not have a centralizing body which can perform the function of controlling its functions and this dearth of a central body may lead to an increased chances of illegal activities in the absence of rigid laws. Moreover, because of their virtual state of being, it is possible that a lot of miscreants will get away with their intentions because of this feature of the new form of currency.
Further on, a committee has been set up by the centre to look into the issues that are ailing the operations of crypto currency in India. Also, soon the Supreme Court will come to a decision regarding the manner in which crypto currency can be eliminated or implemented in the economic section of the Indian nation. The RBI has asked for a time period of three weeks from the Supreme Court to establish its arguments with regard to this case. There have also been proposals in the market that claim that crypto currency may pose a severe threat to the traditional currency in India and they have called for the formation of a framework that can promote better, stricter and sharper laws with respect to crypto currency. Some petitions also want centre to put immediate ban on the operation of crypto currency and thus curbing their influence in India.
At the same time, there are also those who believe that there are a lot of misunderstanding regarding crypto currency in the markets and there has to be more clarity for the same to ensure that there is a platform that allows the operations through crypto currency and also provide security against the hood winkers.
The final decision of Supreme Court will decide the fate of crypto currency in India in the month of September.