Bitcoin and Cryptocurrency cannot be controlled by any Government or Banks. After today’s hearing, Supreme Court of India refused to grant stay against RBI’s decision on banks banning Cryptocurrency related accounts. Is it time to worry Indians?
In a special hearing conducted today by Supreme Court to hear the petition filed by IAMAI, asking for the stay on RBI order to break ties of banks with individuals or businesses dealing in cryptocurrencies in India, the Supreme Court didn’t provide a stay. Much of the Crypto trading community in India was optimistic on stay being granted on this date in the interest of the community. So, is it now a serious concern for the traders or the HODLers, who are in dire need of INR currency to make their ends meet? I don’t think so.
The community has to avoid panic sell under these circumstances as there are many positive developments too in today’s hearing. First of all, Supreme Court has asked RBI to reply to IAMAI representation in next 7 days in detail. It has to be acknowledged that simultaneously, draft regulations on crypto assets in India are being framed and may be presented to the committee in next few days. All this sounds positive for the sector. It will anyhow critical to see how RBI files a response to this representation. The reaction on exchanges was also not too severe as expected because many traders and investors have witnessed wild fluctuations (on downside) on the day news are out and prices getting recovered to normal levels few days after. Nobody wants to lose money in such situation anymore until and unless full clarity is there. The investors have understood that their assets carry same international value as earlier and should not follow the crowd in selling them for pennies after the negative news. There may be temporary curbs on deposit and withdrawals of INR in your bank account due to snapping of services by banks in lieu of RBI order and one may have to stay vigilant on the announcements made by their respective exchanges. It is hardly a matter of two more weeks when more clarity will be available to every investor/trader.
The number of use cases being tried on the blockchain is increasing day by day in India. The government also plans to introduce their own blockchain for recording and transfer of subsidies in transparent manner. Major banks in India are already trying blockchain based solutions for cross-border transfer. With all these positive developments surrounding media each day, I am rather getting more optimistic on this revolutionary technology. I am sure this will also be acknowledged by the Honorable Supreme Court of India when they will have a final hearing of this case on 20-Jul-2018. Till the time, I think one should be happy to enjoy the mini-bull run scenario which has started from the beginning of this month and strictly stay away from the negatives.