The Reserve Bank of India (RBI) shelved its plan to launch the state-backed cryptocurrency because of the increased pressure of Government of India and concern around anti-money laundering.
It seems that the Indian government is still cautious about cryptocurrencies. Back in April 2018, the Central Bank of India announced that it is planning to issues its own cryptocurrency. The RBI even set up an interdepartmental group to conduct a feasibility study. The RBI believes that the use of cryptocurrencies such as Bitcoin will encourage illegal transactions. The RBI has already issued a circular to prohibit the use of digital assets.
From last year, crypto enthusiasts from India were waiting for the decision of RBI. Now, it’s become clear that neither the Government of India nor RBI have any plans to legalize virtual currencies.
The Prime Minister Narendra Modi’s administration is still rejecting the plans of crypto exchange in India. Pon Radhakrishnan, the minister of state for finance said that till now no limit has been made to regulate virtual currencies. In the lower house of Lok Sabha, Pon Radhakrishnan said:
“In the absence of a globally acceptable solution and the need to devise a 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 references.”
Last year the central bank of India announced that it will bar the banks if they will do business with crypto exchanges and other crypto related companies.
The Chief Executive Officer of uTrade Solutions, Kunal Nandwani is very positive on crypto trading. He believes that RBI, currently, is not ready to launch its own cryptocurrency. According to him, RBI needs to work in phases to launch cryptocurrency because the financial belongings of digital assets are very large and unidentified.