Reserve Bank of India or RBI had ordered a blanket ban on all crypto-related transactions conducted by banks and financial institutions.
July 5th is the date of implementation of this ban.
Now, Supreme Court has given its support to the ban, and have refused to put this ban on hold. This is certainly one of the darkest days for crypto-currencies in India.
Now, being practical, what are the next options for the crypto-trader in India?
Is Peer-to-Peer a viable option?
Supreme Court: We Support RBI’s Crypto-Ban!
Internet and Mobile Association of India or IAMAI had filed a petition in the Supreme Court, asking them to put on hold a RBI directive to ban all crypto-related transactions at banks after July 5th.
Yesterday, Supreme Court heard the petition, but refused to block RBI’s directive, which means that after July 5th, banks won’t deal with any transaction related with bitcoins and/or any other digital currency.
In a interesting development, the bench headed by Chief Justice Dipak Misra sent notices to RBI, along with ministries of finance, law and IT regarding the IAMAI petition, and have asked to combine all related cases.
This means that the door of Justice is still not closed for crypto-traders, and the matter is sub-judice. Hence, anything is possible in the coming days.
Next hearing is scheduled for July 20th.
Meanwhile, Subhash Chandra Garg, secretary, department of economic affairs of the ministry of finance, is already heading a committee formed by the Govt. to find out whether cryptocurrencies can be regulated or not.
What Next? Peer-To-Peer Network?
Meanwhile, as an immediate respite is now out of question, various crypto-exchanges and crypto-traders have ‘huddled’ together, and discussing ways to carry on their business.
Considering that fiat money (or regular currency) won’t be allowed to be withdrawn from bank, things are no doubt serious.
As per reports, some crypto-exchanges have decided to use Peer-to-Peer protocol for exchanging digital currencies and buying/selling them.
In peer-to-peer protocol, the buyers and sellers can directly transact with each other, without having banks or any other financial institution as intermediary.
Crypto-exchanges can work as escrow accounts, which can temporarily hold the funds and digital coins. For instance, WazirX, one such crypto-exchange has confirmed that they will now use peer-to-peer network for buying/selling of digital coins.
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