Indian authorities continue to express support for a government-backed digital currency to replace privately-issued cryptocurrencies.
According to Bloomberg, RBI governor Shaktikanta Das has expressed the central bank’s determination to create a digital rupee. According to Das, India’s central bank is “very much in the game” and wants to emulate China’s digital currency electronic project, the digital yuan.
The RBI chief also revealed that the digital rupee project is a major focus for the central bank. While there has been no official release date for the proposed CBDC, Das said that the RBI is currently finetuning the technological and procedural protocols of the sovereign digital currency system.
As part of the interview, Das maintained the RBI’s anti-crypto stance expressing concerns that cryptos are a threat to India’s financial stability.
According to Das, the RBI has reported these concerns to the authorities in government and could shape incoming crypto regulations.
Speculation is rife of an incoming blanket ban on cryptocurrencies with crypto holders given a transition period to liquidate their virtual currency assets.
Promoters of initial public offerings have reportedly begun issuing affidavits stating that they will sell their crypto assets within 24 hours of a government ban.
Crypto stakeholders in India are once again having to make the case for their industry in the face of government opposition. Back in March 2020, the Supreme Court reversed the RBI’s earlier ban on commercial banks servicing crypto exchanges.
Earlier in February, former Coinbase chief technology officer Balaji Srinivasan panned the rumored crypto ban. According to Srinivasan, banning cryptos would be akin to prohibiting the “financial internet.”
However, government authorities are not the only anti-crypto elements in India. Recently, billionaire investor Rakesh Jhunjhunwala, dubbed the “Indian Warren Buffett” called for a cryptocurrency ban adding that the RBI should prioritize the creation of a digital rupee.