The bank also maintains that government authorities and regulators in India are both “skeptical” and “apprehensive” about crypto.
Less than a year after the Indian Supreme Court reversed the Indian Reserve Bank’s ban on crypto-enterprises, the bank’s stance on digital assets looks much more optimistic.
According to the RBI’s payment booklet today, the bank is “exploring the possibility of whether a digital version of the fiat currency is needed.” The bank added that if it found a need, it would look at ways to allow the use of the digital currency.
The RBI booklet recognised the success of cryptocurrencies around the world but reported that Indian regulators and local government authorities were both “skeptical” and “apprehensive” about them. The bank referred to the digital currency of the central bank as a legal tender in the world, but also called it a “digital bank liability.”
India’s government has had a dynamic relationship with digital currencies. In March 2020, the Supreme Court effectively reversed a general ban on crypto that RBI had imposed on crypto firms in April 2018. The number of exchanges has risen in reaction to the Supreme Court decision, but several in the crypto region have voiced their worry about the future of the nation’s industry.
Such a big bank creating a digital currency will quickly continue to embrace crypto in India and beyond. RBI announced that there has been an “exponential increase in digital payments” in the country with a 12.5% and a 43% increase in volume and value, respectively, since 2011. The bank added that it could increase its adoption by approaching “the generation that is most responsive to technology and the digital age”—people born between 1982 and 2004.
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