Reserve Bank today told Supreme Court that allowing dealings in crypto currencies like Bitcoins will encourage illegal transactions and it has already issued a circular prohibiting use of these virtual currencies.
Crypto currencies 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 headed by Chief Justice Dipak Misra was informed by senior advocate Shyam Divan, appearing for the RBI, that a committee has been set up by the Centre to deal with the issues relating to crypto currencies and the matters required a final and early decision from the top court.
The federal bank and the central government sought three weeks time from the bench, which also comprised justices AM Khanwilkar and DY Chandrachud, for filing their responses to a clutch of petitions on the issue. The bench granted time to the Centre and the RBI for filing responses and fixed the petitions for final hearing on September 11.
The plea has sought direction to the Centre to declare as illegal and ban all illegal virtual currencies like Bitcoins, litecoins, bbqcoins, dogecoins etc and investigate and fix accountability on the sale and purchase of virtual currencies till date and prosecute the offenders.
It has also sought to declare as illegal and ban all websites, web links and mobile applications which were being used to buy, sell or deal in any manner with illegal virtual currencies.