Indian government under the leadership of PM Narendra Modi is planning to launch an official digital currency in the coming days. The Cryptocurrency and Regulation of Digital Currency Bill 2021 may introduce a framework for the official digital currency issued by the Reserve Bank of India. Also, it may ban all other private cryptocurrencies in India.
A panel of experts of the Reserve bank of India is working rigorously on bringing an official digital currency to India. The digital currency will be similar to any other cryptocurrency like Bitcoin.
RBI’s Deputy Governor BP Kanungo said on Friday that an internal panel of RBI is working on the project. It would be similar to Central Bank’s digital currency model he added. The officials are exploring all the advantages and disadvantages of launching such digital currency.
“We have already formulated the draft about India’s own digital currency and this shows our intent towards digital currency in India.” – RBI’s Governor Shaktikant Das
Earlier, the government has already declared its resolve to launch an official digital currency against the much older and popular cryptocurrencies like Bitcoin. In the last few days, the government has taken many steps to ban cryptocurrencies in India including Bitcoin but the regulations aren’t clear yet. And it has caused an uneasy feeling amongst the cryptocurrency traders in India.
The proposed bill Cryptocurrency and Regulation of Digital Currency Bill 2021 will bring more clarity to the regulations of cryptocurrencies and will pave the way for India’s own official digital currency. However for now the provisions of the bill are not clear yet. It is believed by the experts that banning cryptocurrencies like Bitcoin would be an impractical measure it is a global and decentralized system.