Rumours have been floating for quite a while now that Indian Central Bank is looking at its own digital currency. However, The Reserve Bank of India (RBI) was only studying the idea and hadn’t made clear about it till yet.
However, the deputy governor of the RBI, T Rabi Sankar, spoke at a conference about introducing the nation’s digital currency.
He said that the Indian digital currency would lower the economy’s reliance on cash and enable cheaper and smoother international settlements. He also added that it’ll protect people from the volatility of private cryptocurrencies.
In his words: “Every idea has to wait for its time, and the time for CBDC [central bank digital currency] is near. We have carefully evaluated the risks.”
He also said that many major countries are increasing their attention on digital currencies. In his words:
“CBDC will be in the arsenal of most if not all central banks in the world. A calibrated and nuanced approach will be considered at the drawing board as well as with stakeholder consultations.”
However, Sankar hinted in his remarks that RBI’s stance on private cryptocurrencies hasn’t changed till now.
India’s stance on cryptocurrencies is still unknown
It’s still not clear what India’s stance on private cryptocurrencies is going to be. Both the central bank and the Indian government have their varied stance upon it. However, while the Indian government is not going to ‘outright’ ban the cryptocurrencies as stated by the finance minister, Sankar’s remark clearly states that RBI is totally towards banning them all.
However, the Indian government is looking to set up a new panel to study crypto regulations. The committee aims to explore the use of blockchain for technological advancement and suggestions for regulating cryptos as digital assets instead of currency. Although the formal resolution has been passed yet, many expect the government to take a calibrated stance and may not entirely ‘ban’ but regulate private cryptocurrencies.