Central Bank of India RBI on Friday appeals Supreme Court that, use of Cryptocurrencies or digital currencies lead to illegal transactions. Cryptocurrency includes bitcoins, Etherium, XRP, Neo, IOTA and many more.

 

Reserve Bank of India already passed a circular stated that use of Cryptocurrencies in India is totally illegal. Police or Indian Government could not entertain any fraud. Excess consumption of Cryptocurrencies pressurized RBI to take such actions strictly.

What are Cryptocurrencies?

Cryptocurrency is also known as stateless digital currency. In these types of currency encrypted techniques are used for trading between two individuals. These currency does not require any dependency. Instead, it works independently without the instructions of RBI. Cryptocurrency does not have any physical shape it is entirely intangible. Another important thing is that no one can trace cryptocurrency.

Chief Justice of India named Deepak Mishra along with another Senior advocate Shyam Divan who is appealing on behalf of RBI. Committee of both the Justice has been set to deal with this serious issue. They want the final and strict actions from the Supreme Court against the use of Cryptocurrencies.

 

 

The central government of India and Federal bank sought three weeks from the committee for this issue. A bench of committee gives time to Government and RBI to file their views or responsibility for the use of Cryptocurrencies. A final hearing on the case is on September 11.

Some of the petitions alleged the use of Cryptocurrencies they stated that use of digital currency could cause harm to Indian Economy. As it’s an easy option for people to gamble because the rates were going up and down with rapid pace. Apart from this use of These currencies lead people to withdraw their money from FD/RDs that causes harm to the whole banking system.

Petitions are also appealing that proper guidelines have been made to regulate the use of Cryptocurrencies. Indian Government needs to take strict actions to restrain the trading of digital currency.

 

 

One of the petition was by Siddhart Dalmia and Vijay Dalmia they said that a central bank with the help of other financial institution freezes all the bank accounts of individual and companies too who are trading in Cryptocurrencies.