Reserve Bank of India (RBI) is getting ready to launch its own digital currency. The president of the institution said about it. By the way, he admitted that his country still has a hostile attitude towards Bitcoin and other cryptocurrencies.
Reserve Bank of India wants to issue its own digital currency
Indian authorities continue to express their support for the idea of creating a government digital currency to replace cryptocurrencies issued by miners.
According to BloombergShaktikanta Das CEO said his central bank wanted to create a digital rupee. According to him, the RBI is “Very committed to this game” and wants to mimic the Chinese e-currency project – the digital yuan.
The head of the RBI also revealed that the digital rupee project is now a central bank’s top priority. While we do not know the official issue date of India’s CBDC, Das said his institution is currently fine-tuning technological and procedural protocols “Sovereign digital currency system”.
As part of the interview, he also upheld the RBI’s position on cryptocurrencies. He expressed concerns that they posed a threat to India’s financial stability. He added that the bank has raised these concerns to authorities and may be shaping past laws on independent cryptocurrencies like Bitcoin.
India doesn’t like Bitcoin
Speculation about the upcoming general ban on cryptocurrencies in India is returning to the top of internet portals like a boomerang. At one point, it was even said that possession of digital currencies would be punishable by 10 years in prison (read more about it here). However, the authorities had to allow for a transitional period so that investors would have time to liquidate their e-assets.
Cryptocurrency stakeholders in India must once again defend their industry in the face of government actions. Recall that in March 2020, the Supreme Court lifted the RBI’s earlier ban. The central bank forbade commercial banks to operate e.g. cryptocurrency exchanges. The problem is that the court’s decision did not change much. Indian companies still have big problems operating in their country.
In turn, former Coinbase chief technology officer Balaji Srinivasan said the alleged cryptocurrency ban would be similar to an internet ban. Another issue is whether a complete ban on, for example, BTC is feasible at all, taking into account the decentralized nature of currencies that are based on blockchain technology.