India will soon have its own Cryptocurrency
December 9, 2019 8:14 pm
Last week, the Reserve Bank of India (RBI), said that it is planning to develop India’s own digital currency in India. According to the conference hosted by RBI, the bank said that it is seriously thinking about developing a sovereign digital currency in the country and will be releasing it appropriately. Therefore, the RBI’s stance on the ban of private cryptocurrency remains the same.
Shaktikanta Das, the governor of RBI stated that the cryptocurrency issuance is a sovereign mandate and will not be handed over to a private company, as there is a huge challenge around money laundering. He also added that RBI is against the private cryptos in the country. The RBI has held internal meetings and discussions with central banks to potentially launch India’s digital currency.
The governor said that “It’s too early” to launch the cryptocurrency as the technology is still in the nascent stage at the moment, and it is going to take time to launch into the Indian market.
In July 2019, the Inter-Ministerial Committee (IMC) led by Subhash Chandra Garg, the secretary of Department of Economic Affairs (DEA) had submitted its report on a ban on cryptocurrency in the country to the finance ministry. The committee recommended that all private cryptocurrencies be banned in India, except the cryptocurrency issued by the government.
Reserve Bank of India said in a statement:
“It has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling [cryptocurrencies]. Regulated entities which already provide such services shall exit the relationship within a specified time.”