Will India ban Bitcoin entirely even though it plans to issue CBDC?

By Selena 12/7/19 11:00 AM

In 2018, the Reserve Bank of India (RBI) issued a ban on domestic banks from facilitating cryptocurrency transactions. To strengthen this ban, Shaktikanta Das, the Reserve Bank of India (RBI) Governor, spoke out confirming the Indian government against private cryptocurrencies. It means India will officially ban Bitcoin.

Cryptocurrency legislation in India is strict

India has long shown hostility towards cryptocurrency. However, the blueprint for establishing clear regulations for cryptocurrencies is still on the desks of Indian officials. Although there is no official rule. However, everyone implies that cryptocurrency or Bitcoin trading in this country is not allowed.

Shaktikanta Das, the Reserve Bank of India (RBI) Governor

However, it seems that despite banning Bitcoin, India is still planning to issue a Central Bank Digital Currency (CBDC). Even so, India’s central bank, the Reserve Bank of India (RBI) again did not compromise. Whether it’s Bitcoin or even CBDC, Das emphasizes private digital currencies cannot be found in India.

Das said:

“The world over, central banks and the governments are against private digital currency because currency issuance is a sovereign function, and it has to be done by the sovereign. It is very early to speak on a central bank issuing digital currencies. Some discussions are going on. Technology has not fully evolved yet. It is still in a very incipient stage of discussions, and at RBI, we have examined it internally.”

Does India ban Bitcoin to make way for CBDC?

Despite being quite tight-lipped, the community is rumored that the Indian government is quietly developing the Digital Rupee. Without denying, India focused heavily on Blockchain-based initiatives. Such as in the field of energy and real estate

However, at this point, if India issues its own CBDC, it will also fail. Because CBDC will not solve the problems related to fiat and traditional markets. Bitcoin and other cryptocurrencies are mainly used a lot because they don’t suffer from the trust issues that the conventional markets are plagued with.

Moreover, like China, India has had a negative stance on the cryptocurrency market in the past. But now, they are looking for the idea of cryptocurrencies. This is evidence that the benefits of this emerging asset class far outweigh any negatives. But, in addition to CBDC development research, India should loosen regulations around the cryptocurrency market rather than doubling the ban. Timothy Cook Draper, an American venture capital investor, has earlier said that a ban could put India back by 40 years.