The crypto community has won the battle against RBI in Supreme Court. Supreme
Court of India adjourned that it is unconstitutional to ban the use of
cryptocurrency on March 4, 2020. Since then it is legal to buy, sell and
exchange cryptocurrency in India.
Internet and mobile association of India has filed a writ against the circular
made by RBI on April 6, 2018. The circular was directing the entities regulated
by RBI to not to deal in virtual currencies nor to provide services for
facilitating any person or entity in dealing with or settling virtual currencies
and to exit the relationship with such person or entities if they were already
providing such services to them.
The RBI main concern about cryptocurrency was, it cannot be traced or
centralized so that it can disrupt the financial institutions. But the RBI had
failed to prove their argument on the court with reasonable grounds. The legal
counsel from the crypto community argued that RBI is assuming things without
doing a proper study. Supreme Court criticized RBI for not looking to developing
software instead of banning the whole thing.
Bitcoin is a form of cryptocurrency which works using blockchain technology. We
can use bitcoin instead of money. It works almost the same as money but we don’t
need a third party to do a transaction. Now the bank acts as a third party when
we do a digital transaction.
But when it comes to bitcoin we transfer money directly from payer to payee.
Here the payer is not entitled to pay any services charges like when we do
banking transaction. It is free and fast. The cryptocurrency claims bitcoin is
safer when compared to the existing financial system.
Cryptocurrency can make an abrupt change in the financial system that existing
today. It has the potential to act as an alternative for paper money and the
current banking system. It is much simpler and we can keep more money without
any headache. Huge transactions can be done without time delay and it is safe.
The corona pandemic made a favourable atmosphere for the crypto community. Today
online medium is more popular when compared to traditional methods of business.
Companies are changing from contemporary method to online. Even though it has an
adverse effect on small scale businesses it is amicable for bitcoin. Large
business entities will be attractive to bitcoin since it is safe and easy to