Author: Jagdish Kumar, India
With crypto currency making lots of noise in India and millions of citizens looking to eye the new market that can make them, India’s central bank, Reserve Bank of India (RBI) is looking to launch its own virtual/crypto currency.
However, when the bank will launch the currency is yet not finalized, but it is believed that RBI is concerned about millions on its citizens are investing in crypto currencies, without proper knowledge about the crypto they are buying.
Speaking on this, RBI’s deputy governor, B P Kanougo said that while there has been a debate between various central bank, globally on the validity and usage of cryptocurrencies, RBI’s internal report has found that with proper guidance, RBI is looking to launch its own digital currency.
However the final decision in this matter will only be taken after the inter-departmental group constituted by RBI submit its report by this month end.
In the statement, RBI said technological innovations, including virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system.
In this regard, RBI has issued a statement on 6 April 2018, “Entities regulated by the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase/ sale of VCs.”
RBI has been epeatedly through its public notices on December 24, 2013, February 01, 2017 and December 05, 2017, cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies.
Image credit: Unocoin.com