Following an earlier endorsement of blockchain technology in India, RBI is now considering a national digital rupee. Well, we still have to watch yet Will Indian rupee go digital or not?
14 September, AtoZForex – The Reserve Bank of India (RBI) is looking into cryptocurrencies despite uncomfortable with “private” cryptocurrencies such as Bitcoin. The central bank has also explored the possibility of digital currencies as alternative to the rupee in the future.
It has initiated the flagship Digital India initiative and research programme to drive that process forward. According to online report, RBI argued that blockchain tech could provide the necessary basis for the digitization of the rupee.
Will Indian Rupee go digital or not?
Meanwhile, RBI executive director Sudarshan Sen said the fiat cryptocurrency will be issued in place of the rupee. He was quoted as saying at India fintech conference:
“Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely.”
RBI had not previously disclosed its plans on cryptocurrencies did not provide any details on where discussions stand. It was unclear whether the RBI group plan to issue a recommendation on cryptocurrencies to the government.
RBI is not comfortable with Bitcoin
However, the RBI has been repeatedly cautioning everyone about the usage of cryptocurrencies, flagging a slew of concerns. According to some media reports, a number of investors are growing in such currencies over the last few years. Especially with the huge spurt in the value of a few of them since the Donald Trump administration came in the US.
“Any user, holder, investor or trader dealing with virtual currencies is doing it at their own risk,” the RBI had cautioned on its website in February this year.
RBI has been repeatedly flagging risks on cryptocurrencies like Bitcoins, stating that they pose potential financial, legal, customer protection and security-related risks. However, the bank is less keen on non-central bank cryptocurrencies like bitcoin, with Sen stating that the RBI is “not comfortable” with such “private” cryptocurrencies. The RBI has previously issued investor warnings on the risks of
The RBI has previously issued investor warnings on the risks of cryptocurrencies. The central bank deputy governor had claimed their potential is “being overstated”during a speech in March.
Share with us your opinion in the comments section below.