RBI Says Crypto is Not Valid As A Currency
September 14, 2018 1:00 pm
Indian Central bank has argued that Cryptocurrencies like Bitcoin cannot be recognized as a currency in the country. Many cryptocurrency exchanges are against Reserve Bank of India (RBI). RBI stated in a written statement that currently, it is not considering cryptos as either currency or money.
RBI stated that cryptocurrencies fall short of being true currencies. The bank also included that it does not admit digital currencies such as Bitcoin as a currency under the existing laws. There are no such provisions under the existing laws treat Bitcoin as a currency.
According to the reports, RBI said that cryptos are peer-to-peer networks that are not controlled by any service provider. They cannot be even recognized as a valid payment system.
In order to be considered as currency, cryptos must have identical or similar characteristics of cheques. They should also include money orders and more. The next hearing of the case will be taking place on September 17.
In April, RBI stopped domestic banks and financial institutions from working with Indian crypto exchanges. The crypto exchanges have been seeking to overturn the ban. The Supreme Court hears at the same time.
Indian crypto exchanges started peer-to-peer trading after the RBI ban. WazirX, an Indian Crypto Exchange’s CEO Mr. Nischal Shetty told that response from traders for this service has been enormous.
Mr. Shetty Stated:
“People love P2P…Everyone had their doubts whether P2P would work or not, the convenience, etc. [But now] We see above one trade match every minute happening in P2P…we’re talking about peer-to-peer transactions at a rate of more than 1 per minute.”