The Reserve Bank of India (RBI) is reportedly mulling over developing the digital version of the Indian Rupee

In the latest booklet, the Reserve Bank of India (RBI) is said to be considering developing the digital version of the Indian Rupee.

The Reserve Bank of India (RBI) is reportedly mulling over developing the digital version of the Indian Rupee

The report states:

“The Reserve Bank of India (RBI) is exploring the possibility of whether or not there’s a need for digital cash despite predominant skepticism toward cryptocurrencies among local regulators.”

The Reserve Bank of India (RBI) stated:

“Private digital currencies (PDCs)/virtual currencies (VCs)/cryptocurrencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been skeptical about these currencies and are apprehensive about the associated risks. Nevertheless, a lack of regulatory clarity prevents the local cryptocurrency industry from moving forward. Since crypto is not recognized as legal tender, exchanges and other related businesses are having a hard time operating in the country.”

Indians are quite concerned about cryptocurrencies. Back in April 2018, the RBI imposed a ban on cryptocurrency transactions and was eventually overturned by the country’s Supreme Court in March of last year.

While many countries like Sweden and China have been experimenting with central bank digital currencies (CBDCs), India has largely been on the sidelines. And the country has only started exploring the feasibility of cryptocurrencies since August 2018 but has barely made any progress since then.

December 2019, RBI Governor Shaktikanta Das, said that the discussions were at a very incipient stage. In the meantime, India is moving closer to becoming a cashless economy. On Jan. 1, RBI launched the Digital Payments Index (DPI) that, as the name suggests, measures the pace of the economy’s digitization.

The volume of digital payments is expected to triple in four years in India, with the raging pandemic bringing them a substantial sum of money.

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