The government of India has never been favourable to crypto activities in the world’s biggest democracy, and Modi-government imposed a blanket ban on trading all kinds of cryptocurrencies.
Early, Reserve Bank of India has banned the banks operating in the country to indulge in crypto ventures on Thursday the 5th December. RBI in an announcement that the government is planning to launch the first decentralized electronic currency.
The Reserve Bank of India is putting in great efforts in terms of resources & money investment to come up with a sovereign electronic currency in India, and they will themselves manage the flow of the government-backed cryptocurrency. However, to date, the RBI has a strong stance on the cryptocurrency ban in the country.
The Reserve Bank of India, Shaktikanta Das in an interview said that the crypto issuance is a sovereign mandate and no private company is given the license to set up a crypto business. This is to curb the menace of money laundering that will be encouraged by allowing digital currencies in the economy.
Further, Das added that the Reserve Bank of India is firmly against private cryptocurrencies to operate in the country.
A few days back, the Reserve Bank of India held several internal discussions and meetings with the central banks on the subject matter of cryptocurrency in India. Post all this, RBI has decided to launch the country’s own decentralized currency.
The RBI governor added the decentralized technology is still in an initial phase and they require to launch the currency in the India market. “It’s too early,” he said.
In the month of July this year, the secretary of DEA (Department of Economic Affairs) led IM committee (Internal Ministerial Committee) put forth in-detailed on the matter of the virtual currency in the country to the finance ministry of India. The underlying point from this report is to have a complete ban over all the private cryptocurrencies in the country, except the one which will be issued by the government of India.
The big decision of banning all the crypto activities in the country wiped out all the crypt start-ups & companies that were making excellent progressive growth in India.
Many international crypto exchanges-, Zebpay, Coinome, Koinex, a few to mention-have already shut down their operation in India after the government’s move, Further, Unocoin had to lay off over half the employees.
Not just a complete ban of private digital currency in India, the Subhash-led committee proposed legal action against someone involved in the exchange of cryptocurrencies, this includes imprisonment of up to ten years.
Earlier it was reported in a joint venture of BRICS, a common cryptocurrency will be developed to force to the American Dollar, however, this is no confirmation with regards to this. Before that, this is a lot of buzz in the air that China, India, and China working in tandem to launch their own fiat currencies. However, countries like Venezuela, Dubai have announced their plans for launching a decentralized currency. In comparison to these nations' plans for launching a government-backed digital currency, India is moving at a snail’s pace.
However, there are reports that the present government is not too keen on bringing the bill of the crypto ban this winter parliament session.