Indian Official Condemns Bitcoin Only to Praise It’s Features in a True Self-Epiphany Moment
Abraham C. Mathews, an advocate at the Supreme Court of India, wrote an opinion column a few days ago that the Reserve Bank of India (RBI) has no structure to enforce cryptocurrency-related regulations.
Mathews explained that due to the way in which Bitcoin was created, it is not possible for authorities to know who is behind each transaction. That means that the RBI couldn’t protect users against fraudulent activities.
India has been taking several policies to regulate the crypto market and avoid investors to enter the space. Indeed, due to the policies that the government took, several exchanges had to shut down their operations in the country.
Back in February 2018, the finance minister Arun Jaitley explained that Bitcoin was not legal tender in the country. In April, he issued circular ordering banks to stop offering services to crypto-related firms.
The RBI had to present its position to the Supreme Court later in 2018. There were some individuals and companies in the market that were complaining against the regulations imposed by the RBI. The Supreme Court has yet to take a decision on the matter.
Mathews explains that the central bank cannot do anything beyond forbidding banks from offering services to crypto companies. Indeed, several countries around the world have implemented different regulations but none of them is able to control Bitcoin.
According to a working paper released by the Finnish Central Bank, regulating Bitcoin was an impossible task.
The report released by the bank reads as follows:
“Bitcoin is not regulated. It cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts. Bitcoin’s design as an economic system is revolutionary and therefore would merit an economist’s attention and scrutiny even if it had not been functional.”
Bitcoin has clearly been created to avoid being controlled by centralized authorities around the world. The comments made by Mathews show that Bitcoin cannot be regulated and there will be no ways to regulate it in the future. Those that want to use it will be able to do so independently from the regulations imposed by governments.