June 15, 2021

India plans to issue its own cryptocurrency

 India plans to issue its own cryptocurrency

Last week, the Reserve Bank of India (RBI) said it was considering issuing a digital currency Central Bank (CBDC).

The head of the Central Bank of the country Shaktikant Das said that so farIt’s “too early” to talk about the launch of CBDC due to technological issues. Nevertheless, the Central Bank supports the idea of ​​creating a digital state currency. Das added that RBI is categorically opposed to private decentralized cryptocurrencies. The Government of India considers the trading and issuing of cryptocurrencies illegal in the country and claims that issuing currency is a sovereign function of the state. In July, the government committee presented its report, which proposed to ban all cryptocurrencies in India.

Many experts attribute increased interestgovernments to CBDC with the launch of Libra from Facebook. Many central banks perceived the cryptocurrency project of the social network as a threat to their control over monetary functions.

China leads the CBDC and regularly announces the development of the digital renminbi. Last week, the French Central Bank announced that it would test CBDC.

As previously reported, the BRICS countries, to which India belongs, are planning to create their own cryptocurrency for settlements between countries.

Earlier this year, the Bank for International Settlements (BIS) published a report stating that more than 70% of banks are exploring the possibility of creating a CBDC.