Indian Government Says Central Bank Has No Plan to Issue Cryptocurrency – The Indian government has informed parliament that it has no plans to produce cryptocurrency that will be regulated by the Reserve Bank of India (RBI).
The government also highlighted that India’s central bank digital currency (CBDC), which will be launched this financial year by the Reserve Bank of India (RBI), is “a digital version of traditional paper currency.”
The Indian ministry of finance responded to queries about “RBI Cryptocurrency” in the Rajya Sabha, India’s upper chamber of parliament, on Tuesday.
Sanjay Singh, a Rajya Sabha member, requested the finance minister to confirm “if the government wants to launch a cryptocurrency that will be controlled by the Reserve Bank of India (RBI).”
Singh went on to ask if the administration is aware that cryptocurrencies are “unregulated and unaffected by government action.”
Minister Chaudhary confirmed the following:
“In India, cryptocurrencies are currently uncontrolled.”
The Indian government is actively drafting legislation on cryptocurrency. A cryptocurrency measure was scheduled to be introduced in parliament during the winter session, however it was not taken up.
According to sources, the government is presently consulting widely on crypto asset regulation and will require additional time due to the issue’s intricacy.
Singh then went on to question the finance minister on the digital rupee that the RBI is developing and intends to issue this financial year.
“How does the RBI cryptocurrency differ from ordinary paper currency?” he inquired.
Minister Chaudhary’s response was as follows:
“The Reserve Bank of India does not issue cryptocurrency. Traditional paper currency is legal tender, and RBI issues it in accordance with the RBI Act of 1994. Central bank digital currency is a digital version of traditional paper currency.”
“The introduction of a central bank digital currency will give a big boost to the digital economy,” Indian Finance Minister Nirmala Sitharaman said during her February 1 budget speech. Digital currency will also result in a cheaper and efficient management system.”
Explaining the upcoming digital rupee launch, the Indian Prime Minister Narendra Modi said: “The digital rupee, by creating new opportunities, will revolutionize the fintech sector and lessen the stress in printing, handling, and logistics management of cash.”