Last week, the Reserve Bank of India (RBI) said it is exploring the issuance of a central bank digital currency (CBDC), but will pursue the idea in due course, local news outlet
Livemint reported. The central bank governor Shaktikanta Das said it is ‘too early’ to talk about a CBDC owing to technological handicaps.
However, Das added that the RBI was strongly opposed to private digital currencies. The Indian government considers the trading and issuance of cryptocurrencies illegal in the country and asserts that currency is a sovereign function. In July, a government committee submitted its report suggesting the ban of all cryptocurrencies in India and proposed a draft bill, Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019.
“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,” Das said.
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