RBI representatives have recognized the potential of Blockchain technology and digital assets for the financial system and believe that they should be actively used in the interests of the national economy. India's national regulator, the Reserve Bank (RBI), has created an inter-ministerial commission to study the use of government-owned cryptocurrencies as legal tender and the implementation of its CBDC. The interdepartmental group will present the first findings in June this year.
Such news comes against the backdrop of aggressive measures taken by representatives of the Central Bank of India and contradicts its ban on cryptocurrency-related activities. The Bank had earlier directed all RBI-regulated entities to cease their activities with companies and individuals involved in virtual currencies. This move means that any users, traders and holders of digital savings will be deprived of the opportunity to purchase cryptocurrencies through platforms that are regulated by the central bank.
The Central Bank of India has previously repeatedly published warnings to the public regarding the use of cryptocurrencies and the risks associated with them. However, the announcement of the possible introduction of a virtual currency by the Central Bank shows that it is not ready to abandon the promising technology.
The position of the RBI - supporting a digital currency with a state issue and opposing decentralized cryptocurrency - is quite consistent with the current position of world regulators: to ban everything that is not subject to global control and to get the maximum benefit from new technologies.
The Central Bank of India joins the growing list global central banks who are considering their plans to create a digital currency token.
RBI Lieutenant Governor Sri Kanungo emphasized that the overall choice of Blockchain technologies by institutional tycoons themselves could be a solution to the problems of money laundering and terrorist financing.
More and more world banks are conducting official research into issuing their own cryptocurrency. People's Bank of China and Bank of England began studying the prospect of issuing national cryptocurrencies last year. Banks of Switzerland, Hungary, Russia, Turkey, Israel, Malaysia, Cambodia and Poland announced the start of work on their own national digital currencies.
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