India's Reserve Bank halts plan to institute digital currency

01 Jan, 2019
by David Borman
News
India's Reserve Bank halts plan to institute digital currency

It is being reported by The Hindu BusinessLine that the Reserve Bank of India (RBI) has, for now, shelved plans to bring about its own digital currency. This news could be related to recent reports that the bank may be considering lifting the ban on cryptocurrency.

Back in April the RBI announced it was looking into its own digital currency shortly after declaring a ban on the general use of crypto. Later in the year, the bank instituted an inter-departmental group with the task of studying the feasibility of such an endeavor. Apparently the findings weren't great, though it has never published them, because a source cited in the article says:

"The government doesn’t want the digital currency any more. It thinks it is too early to even think about a digital currency."

It is possible that to some extent the regulators have been dismayed by the 2018 bear market, or that in their findings, they couldn't find good answers to the issues of how to avoid the proliferation of crime and terrorism around crypto.

Praveen Kumar, founder of Belfrics, weighed in:

"It is premature for RBI to launch crypto-rupee, as more understanding of the crypto economy need to be achieved. It is a right decision to delay the process and see how the publicly traded peer-to-peer economy is shaping up."

It is feasible that the RBI is deciding that legalizing and regulating crypto may be a better route than implementing their own. In either event, stick with Chepicap for all updates!

Read more: India’s Finance Minister: no timeline yet in place for crypto regulation

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