RBI May Be Caught In The Wrong Foot

The Reserve Bank of India has been acting rather peculiarly regarding a case that has gathered a significant hype around itself. Having acted indecisively about its take on cryptocurrency, the RBI had long established that it was dealing with something which it didn’t quite understand. It has further been made clear from RBI’s fidgeting in the nation’s apex court that it’s indeed trying to pass muster a matter with little conviction. The RBI has been in a quandary about its policy and the alleged ban on cryptocurrency for a decently long time now. Actions like these could certainly make the masses wonder: Is the RBI really trying to regulate something that it doesn’t have sufficient knowledge about?

While we wait for facts to be separated from supportive fiction, it must be remembered that the ban on cryptocurrency in India is to be levied from July 5onwards. However, a lot has happened since the matter was first brought to light. When the RBI first shifted its focus to cryptocurrency, it decided to put a ban on it. This ban was later lifted on the basis of it lacking any formal research or legal consultations. However, this did not call an end to the RBI’s fancy. On April 6, the RBI issued a circular that probed about the ban of cryptocurrency usage in India. A total of five petitions were filed against the ban. Four out of these five petitions are slated to be heard on July 20. However, the hearing of one of these five petitions has been preponed to an early date. The respective petition has been filed by Internet and Mobile Association Of India and is scheduled for a hearing on July 3. 

The association comprises of big names like Unocoin, Coinsecure, and Zebpay, etc. What’s interesting to note here is that Zebpay will allegedly make hefty profits, in case the petition is agreed upon. However, if the petition is disagreed upon, crypto exchanges and individual traders in India may incur serious losses. This could even be escalated to a level where these exchanges may have to run the gauntlet and excavate alternative methods for carrying out transactions. We’re only a couple of hours away from discovering the proceedings and decision of the Supreme Court. However, the real question that still remains is: ‘How aware is the RBI about its decision regarding cryptocurrency?’

For more updates on the case of IAMAI’s petition, stay tuned to BTC Wires.