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Cryptocurrencies will boost illegal transactions: RBI to SC
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- The Reserve Bank of India (RBI) on Friday said dealing in cryptocurrency will encourage illegal transactions. The RBI has already issued a circular prohibiting use of these virtual currencies.
- Cryptocurrencies are “a stateless digital currency” in which encryption techniques are used for trading and these ‘currencies’ operate independently of a Central bank like the RBI, “rendering it immune from government interference”.
- A Bench was informed by senior advocate appearing for the RBI that a committee has been set up by the Centre to deal with issues relating to cryptocurrencies.
- Petitioner in his plea has sought a direction to the Centre to take steps to restrain sale and purchase of illegal cryptocurrencies like Bitcoins, which were being traded openly for “illegal activities” like funding terrorism and insurgency.
Cryptocurrencies
