The Reserve Bank of India is preparing to launch its own digital currency very soon.
Indian authorities are in support for a government issued digital currency to take the place of other private cryptocurrencies in the market.
According to Bloomberg, RBI governor Shaktikanta Das has expressed the central bank’s determination to introduce a digital form of rupee. Das said, central bank is “very much in the game” and wants to emulate China’s digital currency electronic project, the digital yuan.
The RBI chief also revealed that this digital rupee project is a major focus for the central bank. However, there has been no official announcement regarding the release date for the proposed CBDC, Das said that currently, RBI is fine tuning the technological and procedural protocols of the sovereign digital currency system.
In the interview, Das maintained the RBI’s anti-crypto stance giving concerns that cryptos are a visible threat to the country's financial stability. According to Das, the RBI has reported these concerns to the authorities in government and could shape the new incoming crypto regulations.
As previously reported by Cointelegraph, speculation is rife of an incoming ban on cryptocurrencies with crypto holders given ample period of time to liquidate their virtual currency assets.
Promoters of initial public offerings have reportedly begun issuing affidavits stating that they will sell their crypto assets within 24 hours of a government's crypto bill.
Crypto stakeholders in India are one more time having to make the case for their industry in the face of government opposition. Back in March 2020, the Supreme Court reversed the RBI’s earlier ban on commercial banks servicing crypto related firms & exchanges.
Earlier in February, former CTO of Coinbase Balaji Srinivasan panned the rumored crypto ban. According to Srinivasan, a ban on cryptos would be akin to prohibiting the “financial internet.”
However, government authorities are not the only anti-crypto body in India. Recently, billionaire investor and characterised as Indian Warren Buffet, Rakesh Jhunjhunwala, called for a cryptocurrency ban adding that the RBI needs to prioritize creation of a digital rupee.