Indian central bank (RBI) contemplates CBDC and P2P crypto-trading

We reiterate from our recent post also that India has been the predominant country for FinTech innovation. On the contrary, contradictory cryptocurrencies perspective appears to be a downright adverse approach in this regard. Yes, we are talking about Indian central bank, Reserve bank of India that had barred banks from dealing in cryptocurrencies back in April, the RBI through its notice titled ‘Prohibition on dealing in Virtual Currencies’, mandated banks, e-wallets, and payment gateway providers to withdraw support for cryptocurrency exchanges and other businesses dealing with VCs in India.

The Reserve Bank of India (RBI) joins a growing list of global counterparts in exploring a central bank digital currency (CBDC) that would constitute the digital equivalent of the Indian rupee.

The Indian central bank has established an inter-departmental group to explore the demand and plausibility of a blockchain-based digital currency to be used in domestic payments, the central bank said in its Annual Report 2017-18 released on Wednesday.

The central bank said: “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 (CBDC).”

Furthermore, the Indian central bank plans for the risk mitigation posed by crypto-space and emphasizes the need to monitor crypto development in anticipation that some trading may shift from exchanges to peer-to-peer (P2P) mode.

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