November 27, 2022

Central Bank of India is developing a concept for issuing state cryptocurrency

The Central Bank of India, despite its negative attitude towards crypto assets, is studying the concept issuing state cryptocurrency.

According to a report by Inc4, Reserve Bank of India (RBI)announced plans to release its own cryptocurrency. Recall that back in April 2018, the country's Central Bank banned banks from processing cryptocurrency transactions. Since then, legal battles have been going on in the country in an attempt to repeal the ban of the RBI, but the decision of the court is constantly postponed.

Cryptocurrency exchanges were forced to adapt tothe ban, and many of them stopped their activities in the country and moved the business to other jurisdictions. Last fall, the Supreme Court demanded that the government clarify the position regarding cryptocurrencies, and there were even reports that the country would issue regulation before the end of 2018, but this did not happen.

Regarding the proposed project owncryptocurrency RBI chairman Shaktikanta Das said the initiative is still in its infancy. In addition, Das said that the bank is opposed to the issue of cryptocurrency by private companies because of the risks of money laundering. The head of RBI also said that the launch of the state digital currency in the Indian market will take some time.

Central banks of other countries are also exploringthe possibility of issuing your own digital currency. Recently, Bank of Japan Governor Haruhiko Kuroda said that the Bank of Japan does not plan to issue digital currency, but is conducting research in case this becomes necessary in the future.

Last week, it was also reported that the Central Bank of France will begin testing the state cryptocurrency next year, and the British Virgin Islands will launch its own cryptocurrency.