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RBI (Reserve Bank of India) plans and an upcoming Bill: Where are digital currencies headed?
The government, which plans a law to ban private digital currencies, favours a digital currency backed by the Reserve Bank of India.
Uncertainty over the legal status of cryptocurrencies is unnerving Indian investors who, according to unofficial estimates, hold around $1.5 billion (Rs 10,000 crore) in digital currencies. The government, which plans a law to ban private digital currencies, favours a digital currency backed by the Reserve Bank of India.
While existing investors could get breathing space to exit their holdings in the event of a ban on trading, mining and holding cryptos, the proposed legal structure may seek declarations of holdings and transactions retrospectively from investors and traders.
On the other hand, RBI has indicated it’s “very much in the game”, and getting ready to launch its own digital currency. “Central bank digital currency is a work in progress. The RBI team is working on it, technology side and procedural side…how it will be launched and rolled out,” Governor Shaktikanta Das said recently.
“I hope the speculation around a ban on cryptocurrency in India is over soon, and the government takes note of the growing demand for Bitcoin among investors closer home,” Modi said. Bitcoin has the potential to hit $100K by the end of the year, he said.