2021-1-27 15:33 |
The Reserve Bank of India (RBI) has gone quite a long way when it comes to cryptocurrency in the past twelve months. Originally, it banned local banks in India from providing services to crypto businesses, only to have its decision revoked by India’s Supreme Court. Now, the bank declared that it is ready to explore the idea of a digital rupee.
RBI says it is exploring the need for a digital rupeeThe mention of the native crypto came in a recent booklet on payment systems published yesterday, January 25th. In it, the RBI noted that it will explore whether or not there is a need for a CBDC, and how to operationalize it if it finds that the country’s economy could benefit from it.
The bank admitted that digital coins have gained quite a bit of popularity in recent years, but it noted that the local regulators and governments have been skeptical about them. Despite this, the RBI is willing to explore the potential need for CBDC.
It is also worth mentioning that the bank has commented on researching and exploring digital currencies in the past, as well. In 2018, for example, it formed an inter-departmental group dedicated to studying and providing guidance on CBDCs and their desirability and feasibility.
The goal back then was to reduce the costs of printing banknotes, although the bank was willing to look into other benefits.
Crypto payments on the rise in IndiaShaktikanta Das, the bank’s governor also addressed CBDC in December 2019, noting that it is too early for them, and that there are technological barriers preventing it from achieving CBDCs. He also noted that the RBI is very clearly against traditional cryptos, and that issuing currencies is a sovereign function.
With digital payments being on a rapid rise in India, particularly through cards and smartphone apps, the bank has, apparently, changed its stance. It is also looking into offline payment solutions for remote areas, where the internet is slow or non-existent at this time.
Its pilot scheme has already been undertaken, and it will last until March 31st of this year. The bank will decide how to proceed according to data it collects in the meantime.
The post From a ban to CBDC: RBI considers its own crypto appeared first on Invezz.
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