The Supreme Court of India (SC) refused to order a stay on the directive passed by the Reserve Bank of India (RBI) on Tuesday. To refresh the community’s memories, the RBI had directed the Indian banks and other affiliated entities on April 5, to terminate all their working relationship with Indian cryptocurrency exchanges.
Although this is a minor setback, it is not the be all and end all of cryptocurrency trading in India. It is important to highlight the fact that it is not a ban. The Indian media, as expected, has erronously reported that there is a country-wide ban on cryptocurrency trading among investors. At this point, it is not surprising that mainstream media is largely responsible for spreading fear, uncertainty and doubt (FUD) among investors.
Adding to the mix, John McAfee tweeted yesterday on the situation. Quoting a news report titled ‘Supreme Court of India says ban on Bitcoin continues – 6 July last day for Indian Bitcoin Exchanges?’ he said, “The Reserve Bank of India (RBI) initiated this atrocity out of fear and won through the existing centralized power structure. I’m calling for a boycott of any financial institution that does business with RBI. We must stand together and act.”
The Reserve Bank of India (RBI) initiated this atrocity out of fear and won through the existing centralized power structure. I'm calling for a boycott of any financial institution that does business with RBI. We must stand together and act.https://t.co/jNLXKfDeeJ
— John McAfee (@officialmcafee) July 5, 2018
Now, as ideal as this sounds in theory, there are some reasons why boycotting the RBI and Indian banks is not ideal:
- Our Indian Rupee (INR) is dependent on the central bank, as it is backed by the RBI. If we want to even buy a product worth Re1, it is still backed by the central bank
- If we were to boycott the RBI, we would either have to go back to ancient times, when barter system was the norm or we have to go to a futuristic age when all our transactions will be through bitcoin.
As an Indian, we know neither of these options are viable as bitcoin is not yet ready for full-scale adoption, atleast in India.
On a lighter note, even if McAfee were to become the President of the United State (POTUS), would he be sending 1.3 billion Indians money, after we rejected the rupee? What would we live on in the intervening two years? It is truly an anarchist thought.
Yes, we are ready and we will stand by each other in these trying times, but there are less drastic measures to convey our dissent. Last we checked, India is still a democracy and there are crypto exchanges out here, that are relying on the P2P model. The model may be fraught with inconveniences but the best thing to do right now is, wait for the July 20 and see which way the dice will fall.
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