According to the Mumbai Mirror report, the governor of the Reserve Bank of India Shaktikanta Das said that there is no possibility of allowing private digital currencies in the country. But the bank is looking into the issuing of centralized central bank-issued digital currency.
Issuing currency is a sovereign right
The Reserve Bank of India is completely against decentralized or private cryptocurrencies as the governor of the RBI believes that issuing currency is a sovereign right of a country. Earlier, the RBI had prohibited all banks in the country from providing any services to crypto exchanges in the country. The case is still pending in the Supreme Court. Das further said that the central banks and governments all over the world are against private digital currency because issuing currency is a sovereign right.
India is looking into the centralized CBDC.
The governor said that it is too early to speak on the central bank issuing digital currency, but he mentioned that there are discussions going on about it. Das stated that the technology to issue a CBDC has not fully evolved yet, but once the technology evolves with adequate safeguards, the RBI will look into the area at an appropriate time.
India’s neighboring country China earlier revealed that they are ready to launch their national digital currency sometime in the next year.