India to create its official digital currency

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While the world is raging over cryptocurrency, Government may ban all private cryptocurrencies in India such as bitcoin, Ripple and Ether and seeks to create official digital currency. RBI hinted to launch its own Cryptocurrency Just like Bitocin.


The union Budget 2021 will witness, the plans to introduce a bill to ban the all cryptocurrencies in India such as Bitcoin. The government will also put in place the framework for an official digital currency to be issued by the Reserve Bank of India.


The new bill has been titled as ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’. The Centre is looking towards the introduction, consideration, and passing of this bill. Issued on 25th Jan, RBI booklet on payment systems also showed that the central bank is exploring whether to issue a digital version of the rupee.


Private digital currencies have gained popularity in recent years, the central bank booklet said. “In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks. Nevertheless, RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and, in case there is, how to operationalize it.


There was recently in the news of opening of the first cryptocurrency bank in India ( in Jaipur, Rajasthan). The company has announced to come up with 100 branches across the country. If the government will put the end to the operations of other currencies, then what will be the future of the bank, it remained as the question mark. Sources said, the bank (UNICAS) is not coming under the guidelines of RBI, but it is coming under the purview of Cooperative bank society.


There are more than 1,000 cryptocurrencies are available across the globe. India has seen a phenomenal rise in interest among its people for bitcoin and other cryptocurrencies in the past year.


The country offers the perfect conditions for adoption of such technology. India is the home to the second-largest population (1.2 billion) in the world with 63% of its population under age 35.


This, when combined with the fast-growing smartphone and internet penetration amid a digital revolution, makes India a fertile land for innovative digital technology.


An expert says, in the coming day, the Indian industries are also to come up with their digital currencies. Sources said, few industry houses are already in the development stage to come up with their own blockchain based digital currencies.

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