Central Bank Of India To Not Create Its Own Cryptocurrency
The Reserve Bank of India (RBI) has decided to suspend a plan to create its own cryptocurrency, according to the Indian magazine Hindu Business Line.
Initially, RBI, as the central bank of India, announced the development of cryptocurrency pegged to rupee in the spring of 2018. To this end, an interdepartmental group was created to identify potential benefits and risks in relation to the digital asset.
In August 2018, the representatives of the Reserve Bank confirmed that the working group continues to operate, taking into account the growing popularity of the crypto sphere. Recently, however, information has emerged that the group’s activities have been suspended.
Referring to its sources, Hindu Business Line reports that the country's government no longer considers the issue related to the national cryptocurrency and believes that it is too early to think about it.
The indecisiveness of the central bank is in line with the general attitude of the Indian authorities to the crypto sphere. In 2018, several tough decisions were made in the country, including banning RBI on servicing crypto companies' accounts. Some government officials believe that bitcoin and other cryptos will remain in the “gray zone” in the near future, and the matter of the crypto creation should be treated with great caution.
It is noteworthy that even representatives of the crypto sphere support the decision of the authorities. It is too early to create a central bank's cryptocurrency, it is necessary to understand first how the crypto industry will develop, Praveen Kumar, the founder of the Indian Belfrics crypto exchange, stated.
As previously reported, the government of India may legalize the use of bitcoin and other cryptocurrencies in the state.