Reserve Bank of India (RBI) has reportedly put plans to launch its own cryptocurrency on hold as India still remains cautious about digital currencies. According to Quartz India, the Indian government has issued an update about the cryptocurrency progress, which lacked any indication towards growth and development of any type of crypto regulations.
Pon Radhakrishnan, the minister of state for finance, told the Lok Sabha, the lower house, on December 28th, reportedly stated:
“In absence of a globally acceptable solution and the need to devise technically feasible solution, the department is pursuing the matter with due caution. It is difficult to state a specific timeline to come up with clear recommendations.”
The update comes just a few months after RBI published its annual report this week and buried within the massive tome are many indications as to the banks perspective on fintech. One item of note is the fact the RBI is currently studying the possibility of issuing a Central Bank Digital Currency (CBDC) – a pursuit that several other central banks have initiated. According to the document;
“Rapid changes in the landscape of the payments industry, along with factors such as emergence of private digital tokens and the rising costs of managing fiat paper/metallic money, have led central banks around the world to explore the option of introducing fiat digital currencies. In India, an inter-departmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency.”
RBI stated at the time it has been keeping a close watch on the emerging cryptocurrency sector of finance. The Bank explains that the regulatory response globally has ranged from a complete shutdown (like China), to a more “light touch regulatory approach,” which is referring to the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).