Supreme Court ruling sets stage for adoption of Bitcoin economy in India

The idea of making transactions with various types of cryptocurrencies has taken the world by storm. However, it presents its own set of complications, which led to the legal battle in the Supreme Court involving the Indian government. The RBI banned all cryptocurrency transactions and the Supreme Court gave the government a four-week window period to come up with a sensible and comprehensive law to regulate the use of cryptocurrencies.

After close to two years of uncertainty on the fate of cryptocurrency use in the country, the Supreme Court made their ruling in March this year.
After close to two years of uncertainty on the fate of cryptocurrency use in the country, the Supreme Court made their ruling in March this year. Photo courtesy: Pixabay

The main concern of the Supreme Court was not the operations of the cryptocurrencies, but the fact that many of them were unregulated, opening up loopholes for all manner of economic crimes. The Central Bank had even moved to ban all operations via cryptocurrencies until there were sensible laws governing their operations. 

Ban on all cryptocurrencies

In April 2018, the National Reserve Bank of India (RBI), imposed a ban on all trading activities being carried out using cryptocurrencies. The move was made as a measure to cut out what the Central Bank described as the ring-fencing on the country’s financial system. 

The move was seen as devastating to the close to five million users of cryptocurrencies in the country. The main complication that arose after the ban was announced was that everyone who had bought the currency was trying to dispose of it as quickly and as efficiently as they possibly could. 

As would be expected in such a situation, the cryptocurrency sales went up, and the cost went down by up to 10 per cent. This means that people were ready to make losses on their initial investment, and at least cash in on a little of the money they had been saving. At the time, the only consolation the investors had was that the RBI had not banned them from holding their Bitcoin in their digital wallets, and transacting with it in foreign accounts. 

But to be fair enough, the government had been issuing warnings to investors and telling them that the use of cryptocurrencies created economic, financial, and legal and consumer protection risks. When they finally cracked down on the sector, it was shocking but not unexpected. 

How trading on cryptocurrencies is done

Cryptocurrency trading is lucrative because it opens up a world of opportunities to buyers and sellers. To participate, you need a trading account and an e-wallet where you store your currency. The most popular cryptocurrencies in India include Bitcoin, Ripple, Ethereum, and Litecoin. Then you can get any of these currencies from a trusted cryptocurrency casino.  

You can buy and sell the currencies depending on how they are trading and when you are likely to make good returns from their sale. Additionally, there are countless online stores where you can use Bitcoin as currency. 

Why cryptocurrency is popular

Cryptocurrencies are popular for a number of reasons. These include: 

  • The transactions are fast and efficient. You can handle several hundreds of transactions within a minute.
  • The wallets offer anonymity when needed making the currencies ideal for gaming and other online purchases you would prefer to keep to yourself. 
  • When the system is streamlined and the right measures put in place to govern the use, cryptocurrency can heighten the efficiency of online trading and reduce problems such as chargebacks and others.
  • International trade is made easier when you use cryptocurrencies. Previously, the process of buying something from another country was a slow and complex one. First, the two countries would need to have business agreements which regulate financial transactions between institutions with ease. Then, it takes time for the transactions to bounce from one institution to another, and get verified. Sometimes, the verification process takes as long as 24 hours. In the fast-paced world we are in today, speedier transactions are preferred. 
Cryptocurrency trading is lucrative because it opens up a world of opportunities to buyers and sellers.
Cryptocurrency trading is lucrative because it opens up a world of opportunities to buyers and sellers. Photo courtesy: Pixabay

The celebrated court ruling

After close to two years of uncertainty on the fate of cryptocurrency use in the country, the Supreme Court made their ruling in March this year. A three-judge bench listened to the petitions made by individual investors against the ban of the use of cryptocurrencies and ruled in their favour.

A clear decision had not been reached even after many rounds of hearings, however, the new ruling has been welcomed by many as they feel that it will open up the country’s economy to a whole new level of financial freedom.

Final thoughts 

Before the ruling was made, Tanvi Ratna, the CEO of Policy 4.0 had made an analysis of the benefits which cryptocurrency trading would bring back to the economy. Now that a favourable ruling has been made, the traders can sit back comfortably and reap the benefits of having an expanded economy, all thanks to cryptocurrency trading. 

It is safe to conclude that cryptocurrencies are here to stay, and as long as the right security measures are put in place to ensure that no one circumvents the system for their own gains, everything will flow smoothly. 

Disclaimer: Opinions expressed in this article are author's personal opinions and do not reflect the views of Connected to India and the management of the company does not assume any responsibility or liability for the article.

Author
Mital Rana
Mital Rana – Contributor

Mital Rana earned a masters in marketing. She is a computer science engineer and a cyber security professional. A mother who enjoys life, loves learning from things, big and small, and pouring her learning into writing. She writes on a range of topics from current affairs and news  topics to soft skills and travel.

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