As averse to cryptocurrency as India is, there might be some hope that sometime in the future, the country will issue its own central bank digital currency (CBDC). This view has been shared by Shaktikanta Das, the governor of the Reserve Bank of India (RBI).
During a recent press conference held on Thursday, DAS specifically said that the RBI and the Indian government are not supportive of private digital currencies because currency issuance should not be privatized. Das said:
“The world over, central banks and the governments are against private digital currency because currency issuance is a sovereign function and it has to be done by the sovereign.”
For many months, the Indian government has frustrated efforts for the growth of cryptocurrency in the country. For a while now, banks and other financial institutions have been prohibited from rendering financial services to crypto-related businesses and there is also a draft bill that seeks to completely ban digital assets.
The governor however spoke on whether or not the RBI will float a CBDC. According to him, discussions are going on and the RBI is still examining it. However, it might be a little too “early to speak on a central bank issuing digital currencies.” He said:
“As and when the technology evolves with adequate safeguards, I think it is an area where the Reserve Bank will certainly look at seriously at an appropriate time.”India has confirmed its position against private digital currencies but is open to issuing its own CBDC.
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