Chennai: The Reserve Bank of India has reportedly shelved plans to launch a digital currency for now as it believes it is too early to even think about it given India’s current situation.
According to media reports, the apex bank is not looking to go ahead with with its Central Bank Digital Currency (CBDC) for now, as it “doesn’t want the digital currency anymore”.
A media house had reported, citing unnamed sources, that the RBI may be looking at what other developed countries do, as it doesn’t “have a formal unit for tracking of, and policy-formation on” cryptocurrencies and blockchain technology.
The news outlet’s source was quoted as saying, “The government doesn’t want the digital currency any more. It thinks it is too early to even think about a digital currency.”
The RBI initially revealed it was looking into the possibility of launching a cryptocurrency in April last year, when it established a group to look into its potential advantages. The idea was to better control money laundering and cybersecurity threats, among others, through its CBDC.
In October, a private panel with India’s Finance Ministry revealed that high ranking officials were considering a national cryptocurrency. It also noted that not every official were on the same boat.
Reports have stated that an interdisciplinary committee set up by the Indian government is looking into regulating and legalizing cryptocurrencies in the country, although with tough terms and conditions.
Last year, India’s RBI ordered commercial banks to stop dealing with cryptocurrency-related firms. The move saw one of India’s largest exchanges (by trading volume), Zebpay, shut down.