RBI Can’t Recognize Bitcoins Under The Current Legal Regime: Files Affidavit in Supreme Court

Virtual Currencies Are Neither Money Nor Currencies – RBI

In April 2018, the Reserve Bank of India (RBI), issued a circular prohibiting all the banks and digital wallets associated with RBI to stop providing the banking facilities to those companies which are providing the crypto-INR exchange facilities. In response to the ban, various cryptocurrency exchanges started challenging RBI in different courts. All of these cases were clubbed and were taken to the Supreme Court.

RBI’s Affidavit

To put their point across the court and to clarify their aversion for the digital assets, RBI has filed an affidavit in top court against cryptocurrency. The affidavit states that cryptocurrencies like bitcoins cannot be recognized under the current legal regime. Furthermore, RBI further states that virtual currencies are neither ‘money’ nor ‘currency’, and they can’t even be considered as a valid payment system. 

The above has nothing to do with today’s RBI VS CRYPTO Supreme Court Hearing.