Despite the Supreme Court’s decision, banks have continued to warn their customers against dealing in cryptocurrency. This is because the RBI has long campaigned against it.
Governor Shaktikanta Das of the Reserve Bank of India recently stated that the RBI has expressed its “serious and major concerns” about virtual currencies (VCs) to the government.
At best, the so-called fears about Bitcoin are unfounded, and at worst, they scent of the central bank’s statist attitude. A three-judge bench of the Supreme Court invalidated the RBI’s April 2018 ban on dealing in cryptocurrencies such as Bitcoin on March 4, 2020.
The Reserve Bank of India (RBI) advised banks not to use the 2018 prohibition as a justification to refuse banking services to customers trading in bitcoin on May 31 this year.
According to an RBI circular, “it has come to our attention through media reports that certain banks/regulated companies have cautioned their customers against trading in virtual currencies” by mentioning the restriction it has enforced.
Meanwhile Editor Ravi Shanker Kapoor posted a tweet saying, “RBI has lost case on cryptocurrency in the Supreme Court, it must stop behaving like sore loser.”
THE FEARFUL RBI
It took almost a year for the RBI to discover, based on media reporting, that the firms it controlled still considered virtual currencies to be illegal.
This is unquestionably not a reflection of the financial regulator’s effectiveness.
Despite the Supreme Court’s decision, the RBI has continued to campaign against cryptocurrencies, prompting banks to warn their customers against trading in them.
Das expressed his concerns about VCs in the last week of February this year. The following month, he stated that the RBI had serious concerns. Then there was a third time in June. His anti-cryptocurrency passion appears to be more akin to an activist’s zeal than a statutory regulator’s hesitation on the subject.
RBI even circulated and advertised a notice about trading in cryptocurrency in which it was clearly written that trading in any form of virtual currency isn’t illegal in the country.
A user posted a tweet, unmasking RBI with facts and satires.
Cryptocurrencies are digitally encrypted, decentralised, and unregulated by any central bank or government, and the RBI remains hostile to and sceptical of them.
From the birth of cryptocurrency in the 1980s, its supporters were anti-establishment militants with a libertarian-like scepticism of central banks and governments.
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