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.