Earlier this week, India’s Supreme Court struck down the central bank’s ban preventing banks from doing business with cryptocurrency exchanges, businesses, and users. The Reserve Bank of India has reportedly confirmed that it will seek a review of that high court decision, in an attempt to appeal the ruling.
According to a report in the Economic Times, the central bank fears that the high court decision could open the door for widespread digital currency trading that could destabilize the country’s banking system.
While the RBI’s ban only prevented banks from dealing with customers who use cryptocurrencies, it effectively banned all digital currency trading in the country, since exchanges and users relied on banking services for their activities. Now, observers are waiting to see if and when banks begin to allow their customers to once again link cryptocurrency exchange accounts to their bank accounts.
The RBI’s attempt to appeal the Supreme Court decision is likely to have little chance of success, given that the court appeared to see a fundamental right at issue in the case:
The apex court said the right to create something that doesn’t violate any existing rule is an unsaid fundamental law. Hence, citizens have the right to create a new industry of cryptocurrencies and exchanges along with the fundamental right to trade, it said. The bench also said that the central bank hadn’t demonstrated that trading in such currencies was damaging to the entities it regulated.