The Reserve Bank of India (RBI) released a circular on the 6th of April which demanded Banks to stop supporting virtual currency exchanges. There was an online petition which the Cryptocurrency community in India took part in, which challenged the RBI’s decision. On Tuesday, the RBI got caught red-handed for misinformation and making decisions out of thin air!
The RBI’s Right to Information (RTI) query gives a chance to the Indian citizen to request for a response to a particular question or comment. The RBI cannot refuse such questions, and thanks to a Twitter user by the name of @Blockchainlaw91 it showed that the RBI has no prestige left for their ignorant act.
The Tweet posted by @Blockchainlaw91 read-
Interpret it yourself🙃
— Varun | Blockchain Lawyer (@Blockchainlaw91) June 12, 2018
The Twitter handle, @Blockchainlaw91 is the owner of Blockchainlawyer.in, and his real name is Varun Sethi.
The attachment goes to show you the degree to which the RBI is making its own decisions without taking into consideration an expert opinion.
Sethi clarified RBI’s unnecessary decision by stating, “The RBI specifically mentions that it conducted no research or consultation before the implementation of restriction in April. The RBI also responded that no committee was ever formed for analyzing the concept of blockchain before the decision.”
July 20th is the day when the case will be heard, and the misinformation from RBI puts it in a weak position to win against the cryptocurrency enthusiasts.
One of the petitioners in the Supreme Court, Khaitan & Co. also commented on the latest update.
“This RBI response has cemented our case ahead of the hearing in SC. The grounds on which our writ petition has been filed is that the RBI has not done enough research to ban a business completely,” said Rashmi Deshpande, associate partner at Khaitan & Co.
The crypto camp in India are smiling now thanks to RBI’s ignorance, and are almost 100% sure that the case on July 20th will be on the cryptocurrency side and help decentralization win over the careless central bodies like RBI.
Image Source: “Flickr”