Confirmed, Central Bank of India wants to issue a digital currency
On several occasions we have exposed the case of India, with highs and lows with respect to cryptocurrencies, although on this occasion, we expose a case that promises growth for this country. The Central Bank of India, the Reserve Bank of India (RBI) , confirmed the creation of an interdepartmental group charged with analyzing the feasibility of issuing a digital currency of the central bank backed by rupees (CBDC).
The establishment, focus and powers of the group are detailed in the Bank's Annual Report 2017-18, confirming certain rumors and discussions that emerged from a meeting of the Monetary Policy Committee (MPC) of India, held in April of this year.
According to reports by the Economic Times, statistics suggest that the cost of printing paper notes in India was Rs 6.3 billion (about $ 89 million) for fiscal year 2018. The RBI report noted that:
Other factors include " rapid changes in the payment industry " and the " increase " of private digital tokens, according to the Economic Times.
Mahesh Makhija , from EY India, told the newspaper that:
"The idea of a digital currency issued by the central bank is very promising, although the problems related to digital counterfeiting should be addressed." In addition, he noted that RBI's indication that the idea of using distributed accounting technology (DLT) for payment, clearing and settlement processes is open is "a welcome development".
Although he pointed out that cryptocurrencies currently do not "present systemic risks", while the bank warned that "the cryptocurrency ecosystem can affect the existing payment and settlement system that could, in turn, influence the transmission of monetary policy"
Calling for coordination with global regulators to address the challenges posed by cryptocurrencies, the bank announced that in the meantime it would be closely monitoring:
"Exchanges to peer-to-peer mode, which can also imply greater use of cash. The possibilities of migration from cryptocurrency bureaus to dark / cash funds and to offshore locations raise concerns about Anti Money Laundering (AML) / Combating the Financing of Terrorism (CFT) and tax matters ".
Projections
The future of India remains uncertain, analysts believe that these first steps are a stable and useful start to establish the bases; however, if they maintain the regulatory and prohibitive measures applied by the middle of this year, the Indian market will stagnate.
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