Soon after officially stating that the authorized banks and companies attached to the central bank may not be able to buy cryptocurrencies via these platform, RBI came with another news that it is looking at the possibility of introducing a ‘central bank digital currency’.
At the end of the two-day meeting of Monetary Policy Committee (MPC) of the RBI, Deputy Governor B P Kanungo said,
“While many central banks are still engaged in the debate, an inter-departmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency.”
The report is believed to submitted by June 2018. When discussing in deep about its motive of bringing out the central bank digital currency, RBI mentioned that by utilizing technological innovations, including virtual currencies, the possibilities to improve the efficiency and inclusiveness of the financial system are also huge.
A statement issued by the RBI stated,
“Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, 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 VCs. Regulated entities which already provide such services shall exit the relationship within a specified time,”
More news and updates on central bank digital currency are yet to come in the coming days.
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