RBI Must Better Understand Cryptocurrency

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It seems there has been no full stop to consisting coronavirus. Still, there has been not much drop in its cases. Among many big cities, Delhi is also counted for the rising cases of the deadly virus. However, everyone is left with no other option but to wait and watch the current changes that are taking place in the capital. It all indicates the situation where one is helpless, and the only way out is to wait and watch. Now there is a similar condition on the good note. The latest example is the current judgment of the Supreme Court rejecting the ban on cryptocurrency which was previously levied by RBI in April 2018. Now it is okay to disagree with something which you don’t like. Still, RBI must need to understand cryptocurrency.

Ever since Bitcoin became a popular digital asset, people got so influenced by cryptocurrency for trading and for investments. They even started taking advice from financial experts regarding the easiest way to buy cryptocurrency. However, despite gaining much popularity, this new digital concept still has to face a litmus test to get acceptance. There are countries where cryptocurrency is still being seen in a doubtful approach. If you are abreast of In April 2018, RBI even banned the trading of cryptocurrencies and issued an order to member banks to not involve in any activity which is related to cryptocurrencies. These banks were strictly ordered by RBI to not offer any kind of services to anyone be it any person or entity being linked to latter technology. 

Later on, a governmental committee too added fuel to the matter in requesting the Government of India to step ahead in banning the unofficial use of cryptocurrencies in India. The reason for this decision is not so improbable and neither appalling. It is okay to express the disagreement on cryptocurrency, but it is good for RBI to understand cryptocurrency. When it comes to the concept of cryptocurrency, then how can we forget the blockchain, a distributed ledger technology. It is a way of sharing or duplicating the digital data of transactions and personal details. There is no interference with any central authority. When it comes to counting on advantages of cryptocurrency, then batch processing micropayments and KYC authentication are the prominent ones.

However, according to critics, RBI does not understand cryptocurrency fully. There is no doubt about it. They even suggest having an infrastructure with regulation surrounding the technology. It will keep consumers protected from the net of fraudulent cases. But there is a difference in being said and done. RBI must avoid showing the authoritarian proof about how member banks that faced the loss or negative impact either direct or indirect to enable transactions of virtual currencies. There are enough worldwide proof and priority for the stand taken by RBI.

Conclusion

Cryptocurrency is a newbie concept for many countries. Still, the concept of cryptocurrency is still being seen in a doubtful way. Many believe that these digital currencies are easier mode to carry unlawful practices like money laundering, smuggling, and others. RBI too believed in this conception and banned it in the year 2018. It gave directions to banks to not involve in any kind of dealings or attending customers related to cryptocurrencies. However, RBI failed to understand cryptocurrency and could not prove its point about how cryptocurrency can be a harmful form of trading. This inefficiency of evidence came advantage for cryptocurrency when Supreme Court pulled off the ban from it. Now there is no fear to buy cryptocurrency in India.

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