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Reserve Bank of India to Supreme Court: "Bitcoin cannot be recognized as currency"

13 Sep, 2018
by Manon Bridou-Koenig
News
Reserve Bank of India to Supreme Court: Bitcoin cannot be recognized as currency

The Reserve Bank of India staded that Bitcoin cannot be recognized as either money or currency before the nation's Supreme Court.

The RBI set in an affidavit that the current legislation means that cryptos cannot be considered either currency or money, in reaction at a court battle that has been brought by a number of exchanges against the Indian central bank for blocking access to banking services five months ago.

Read more about RBI BanSeveral Indian crypto exchanges share their expectations ahead of RBI hearing

Yesterday, the Reserve Bank of India staded that Bitcoin cannot be recognized in the country before the nation's Supreme Court.

"It is submitted that crypto-currencies fall short of being true currencies. It is further submitted that RBI does not consider virtual currencies such as Bitcoins as 'currency' under the extant laws. There are no enabling provisions under the extant law to treat Bitcoin as currency."

According to CNN's News 18, the RBI continued to say that, as cryptos are peer-to-peer networks and not controlled by a service provider : "They can't even be considered as a valid payment system."

In order to be recognized as a "valid currency" the bank said instruments should "possess identical or similar characteristics of cheques, postal orders and money orders."

The next hearing on the case is scheduled for September 17, the news source indicates.

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