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India could ban private crypto and launch CBDC

India's government could be set to ban private cryptocurrencies as it forges ahead with a CBDC.

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India could ban private crypto and launch CBDC

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

A bulletin on the Indian parliament website says the government plans to introduce a bill to "prohibit all private cryptocurrencies in India".

However, it goes on to say that it would allow for "certain exceptions to promote the underlying technology of cryptocurrency and its uses".

Meanwhile, the bill will also "create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India".

Indian prime minister Narendra Modi recently said that cryptocurrencies could “spoil our youth” while the country's central bank has long been sceptical of the likes of bitcoin.

In 2018 the RBI banned financial institutions facilitating services related to cryptocurrencies. The move was overturned by the supreme court last year.

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Comments: (1)

Andrew Smith

Andrew Smith Founding CTO at RTGS & ClearBank

I think the approach should be more of regulation of private cryptocurrencies..... But at the end of the day, this is tough, value can be derived in many ways - so its best to try and work with the community as opposed to simply trying to ban it

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