India Plans to Launch its Own Cryptocurrency

After considering the issue thoroughly, India decides to go for its own cryptocurrency and do it independently of any private blockchain companies.

6 December 2019 | AtoZMarkets – After several kicks from the Reserve Bank of India (RBI) against cryptocurrencies in the country, the central bank has announced interest in digital currency.

RBI plans to jump on the crypto bandwagon

According to a report on Thursday, the RBI revealed plans to develop India’s own cryptocurrency appropriately, after several intensive studies necessary for the launch.

The governor of RBI, Shaktikanta Das noted that the issuance of the cryptocurrency is coming as a sovereign mandate. Also, the launch of the cryptocurrency into the Indian market could take time. The reason is that the technology is still in the nascent stage, he said. “It’s too early.”

The governor further said no private company in India or elsewhere will be allowed to create the official digital currency. The RBI itself will handle this. This decision was made after numerous discussions and meetings with other major banks and government reps.

Ban on private cryptos remains

Meanwhile, the announcement today doesn’t change the central bank’s stance on private cryptocurrencies. Das noted that RBI is still against individual digital currencies in the country.

Notably, the Inter-Ministerial Committee (IMC) submitted a report in July to the finance ministry. In it, they proposed the ban of all private cryptocurrencies in India except for the ones issued by the government.

The decision today could be seen as a welcome development despite the outright ban of private cryptos in India.  The RBI’s move spells hope for the residents to officially use digital currency in the future. In fact, India, along with other BRICS countries are considering to bring in their own cryptocurrencies to counter USD.

In October, the Pune City police in India reportedly could not get their hands on 85 million Rupees ($1.2 million) realized from the sale of 244 confiscated bitcoins due to RBI’s regulation on cryptocurrencies.

However, for blockchain, the authorities have shown practical interest in the technology. They have adopted blockchain to sustain and enhance several sectors in the country, including the tea Industry.

France also intends to launch its digital currency

In a related development, France also considers the launch of its own cryptocurrency in 2020. This decision came after the Facebook Libra coin was prohibited in France and other parts of Europe.

Moreover, China has been working on creating its own crypto for several years now and is close to launching it. The name of the currency that has been mentioned by the Chinese press so far is DCEP – digital currency electronic payment.

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