In a move that is being considered iconic by many, India’s Supreme Court (SC) overrode a two-year-old ban on cryptocurrency trading in the country this week. This verdict comes two years after The Reserve Bank of India (RBI) had imposed a ban that barred banks and other financial institutions from facilitating any service in relation to virtual currencies. In the ruling, the bench headed by Justice Rohinton F. Nariman overruled central bank’s 2018 circular on the grounds of disproportionality.
Crux of the Matter
Cryptocurrency: The Vault of Electronic Currency Alternatively known as a virtual currency, it is an internet-based medium of exchange which uses codes and tokens to conduct safe financial transactions. It’s most important feature is that it is not controlled by any central authority i.e it has a decentralized nature which makes it theoretically immune to the old ways of government interference. Popular cryptocurrencies like bitcoins and litecoins can be sent directly from one party to another via the use of private and public keys. These transfers are done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions, which in turn leverages blockchain technology to gain decentralization, transparency, and immutability.
Why did RBI Hide this Crypt from Citizens ? In April 2018, RBI reportedly wanted to curb “ring-fencing” of the country’s financial system. It had also argued that Bitcoin and other cryptocurrencies cannot be treated as currencies as they are not made of metal or exist in physical form, nor were they stamped by the government. The central bank notice had sent several local startups and companies into panic mode as they were actively offering services to trade in cryptocurrency. A group of petitioners including a trade body, the Internet and Mobile Association of India, had challenged this decision. They argued back then how this move would put a brake on the nation’s digital progress when countries like US and China were not only involved in cryptocurrency trading but also launching their own virtual currencies.
Now that Virtual Laxmi is Back, Is She Welcomed? Even if many startups have had to shut shop since the RBI ban, others survived the storm to even attract M&A interest. Now they are planning to restart work with the regulators in order to create a better framework and improve the presentation in the draft cryptocurrency bill. Nischal Shetty, founder and chief executive of Bitcoin exchange platform WazirX, is overjoyed as his twitter handle reads, “Crypto has won in India. We can now innovate. The entire country can participate in the Blockchain revolution.” He adds that India will now see 100 crypto new startups in the next few months, along with VC investments, better jobs and a real contribution to the economy.
I got my deposit on WazirX 😎 INR deposits are live and how! Crazy rush from users. Crazy love from users. Thank you & #IndiaWantsCrypto $WRX pic.twitter.com/sxtK3fsjVT — Nischal (WazirX) ⚡️ (@NischalShetty) March 5, 2020
Curiopedia
Bitcoin (₿) is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its source code was released as open-source software. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. Research produced by University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. More Info
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