On reacting to the move of Supreme court for not providing relief on the circular of Reserve Bank of India, in which Reserve bank gave three months time to banks and financial institutions under the regulation of the apex bank to halt services to exchanges dealing in cryptocurrencies or say virtual currencies. John McAfee founder of McAfee tweeted that
‘’ The Reserve Bank of India (RBI) initiated this atrocity out of fear and won through the existing centralized power structure. I’m calling for a boycott of any financial institution that does business with RBI. We must stand together and act.’’
He clearly opposes the move of the Reserve Bank of India and appealing other financial institutions who do business with the bank to stop and show their stand against this move and indicating that this has been done because of the fear.
At one point we can validate his point as Reserve Bank of India itself in a Right to Inform (RTI) mentioned that bank had not made any committee to research in the matter means no research had been done within these three months and before giving the circular too.
All action took place in April when Reserve Bank of India which is apex institution in banking in India released a circular and told all banks and financial institutions to stop giving services related to cryptocurrencies in a strict manner and given three months time till 5 JULY 2018 to banks and financial institutions to wrap up the business.
The main reason behind this can be seen as the stand of Government of India, the Finance minister of India in parliament told that government will not recognize cryptocurrencies as legal tender so can’t let it enter into the mainstream.
The government of India is strict towards the terror financing related activities so don’t want to give the legal tender to cryptocurrencies against terror financing government of India also done demonetization to stop illegal financing, terror financing, and black money.
How is trading continues despite ban ?