The government of India is not mulling the launch of a cryptocurrency that would be regulated by the Reserve Bank of India. This has been revealed by the Minister of State for Finance, Pankaj Chaudhary in a written reply to a question that was raised at the Rajya Sabha. Mr. Chaudhary said cryptocurrencies right now are unregulated in India. The role of the RBI is limited to issuing traditional paper currencies which are considered as legal tender for carrying out financial transactions within the country.
The Minister of State for Finance also stated the government is in the process of formulating a digital currency which however is going to be the digital version of paper currencies and shouldn’t be mistaken as a cryptocurrency. Named as the Central Bank Digital Currency or CBDC, it still is in the developmental stages and is going to be implemented in a phased manner to ensure the least disruption to the current system.
The government however is working to introduce a bill on cryptocurrency which seeks to ban the use of digital currencies for carrying out transactions within the country. The Cryptocurrency and Regulation of Official Digital Currency Bill, as it is named will however allow select crypto coins to exist to ensure the underlying technology those are based on gets implemented in other sectors. For instance, the government has shown interest in promoting blockchain technology which experts suggest holds a lot of potential and can help ease things in a lot of other sectors as well.
The bill has been under consideration for more than a year now which experts believe should include enough input from all quarters to ensure proper safeguards are in place the prevent misuse of cryptocurrencies while the underlying technologies that are based on gets implemented in other quarters. The Finance Minister had earlier stated the contents of the bill would be introduced in the public domain once the bill has been approved by the union cabinet.