Central Bank of India Is Serious about Digital Rupee Project

While Indian authorities appear bent on banning the use of private cryptocurrencies in their jurisdiction, it also appears that the government is also looking to issue a central bank digital currency (CBDC), a digital rupee, to replace the former. A report from Bloomberg has stated that the chief of the country’s apex bank, Shaktikanta Das, says that India’s central bank is determined to develop a digital rupee. According to the bank’s chief, the third-largest economy in Asia is very “much in the game” while adding that the country looks to emulate the Chinese in their pursuit of the digital Yen project.

Though India is yet to release any official date for the launch of the digital rupee project, Das, however, reiterated that the CBDC project is a focus of the central bank. The RBI top executive also added that the country was currently working on putting the necessary technological and procedural protocols in place so as to make the project a success.

Das was also quick to mention that the financial regulator has also informed the government of its “major concerns” about the use of private crypto assets. According to Das, these virtual currencies pose an enormous risk to the financial stability of the Indian economy.

Authorities in the Asian country have a history of a negative stance towards cryptocurrencies. Before this proposed blanket ban on virtual assets, India had earlier banned the use of Bitcoin and others for over two years, however, the ban was lifted by the Supreme Court of the country.

The country has now renewed its efforts towards seeing the back of digital coins as a transition period has been given to crypto holders to liquidate their assets. Notably, popular Indian billionaire investor, Rakesh Jhunjhunwala, popularly referred to as the “Indian Warren Buffett” is in support of the government’s decision, he has called on the government to issue a crypto ban while also advising them to work on a digital rupee instead.