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HomeCrypto NewsMarketThe Central Bank Of India (RBI) Is Beginning To Explore The Potential Of State-Owned Digital Currency

The Central Bank Of India (RBI) Is Beginning To Explore The Potential Of State-Owned Digital Currency

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Despite the rumors about the upcoming bill to ban cryptocurrency trading, the RBI’s position on digital assets has become more optimistic.


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According to a report published after a study of the payment industry in India, the regulator’s experts recognize that cryptocurrencies have become popular all over the world. However, Indian regulators and local governments are skeptical and even wary of them.

The RBI called state-owned stablecoins are legitimate means of payment, which should be considered as an obligation to the central bank digital form. Therefore, the Bank of India will begin to study whether there is a need to launch a digital version of the national currency, and, if it is economically feasible, the RBI will explore possible options for its use.

The Indian government has a rather complicated relationship with digital assets. In 2018, the RBI banned banks and financial institutions from providing services to firms working with cryptocurrencies.

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However, in March 2020, the Supreme Court of India overturned the RBI directive prohibiting the use of crypto assets. After that, many trading platforms appeared in the country, but Indian traders still express concerns about the future of the cryptocurrency industry in India.

According to the RBI, the volume of digital payments in the country is 43%, and in 2011 this figure was 12.5%. The bank said that it can expand the introduction of digital payments, focusing on the needs of the younger generation, which easily adopt new technologies. If such a large bank and strict regulator launched its own digital currency, other central banks could follow suit, speeding up the development of their CBDC’s.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Author

Ammara
Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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