Digital Currency: Whose Money is it Anyway!

Abstract

“Currency is known for its value. It is a legal tender and an insignia of sovereign state. Currency works as a consideration in market and provides wheels to economy via sale and purchase. Currencies are territorial and regulated by Central Authorities in modern legal system. Computer and internet converted the world in a global village. Virtual currency knows no boundaries and rejects the interventions & regulations by third party. Satoshi Nakamoto a pseudonymous creator created virtual currency in 2009 and it became very popular in western world due to being based upon cryptanalysis technology and removal of manipulations by trusted third parties like banks and regulators. Initial coins offerings played a major role in popularizing the digital currency. Technologies like blockchain, Internet of Things, 4.0, Artificial Intelligence and Machine learning have made the virtual currency robust with passage of time. Many jurisdictions raised concerns over its possible abuse in illegal activities. Financial Action Task Force cautioned the countries about its possible abuse. In India Reserve Bank of India banned virtual currency in 2018 by a circular but on 4th March 2020 Supreme Court of India declared ban by Reserve Bank of India as illegal on the basis of proportionality. In this paper the author aims to discuss, debate and deliberate upon the aftermath of the Supreme Court’s Judgement and role of Reserve Bank of India relating to Digital Currency.”