Almost 50 lakh Indians woke up on April 5th, 2018 to a shocking announcement made by the Reserve Bank of India, that any kind of transactions in Cryptocurrencies by any of the Financial Institutions that fall under its lens, are valid no more. The risks involved in transacting with Cryptocurrencies and instability that it may cause to the Indian Economy, are the reasons quoted by RBI.
Reducing the cost involved in printing and circulating the present paper currency, is also a contributing factor in introducing a Central Digital Currency.
Although RBI has publicly expressed uncertainties over the future of cryptocurrencies in India, it admits the power and opportunities of blockchain technology and how it can contribute to elevate the country’s financial status, to an altogether higher level.
A dedicated team within RBI will analyse the pros and cons of a possible, new ‘Central digital currency’ which is likely to be rolled out soon. However, the proposition is still being mulled over by financial Institutions across the world. The new digital currency, when It becomes a reality, will be valid along with the paper currency.