In a recent report, the Central Bank of India(known as RBI) has proposed to issue its own Cryptocurrency. The announcement was made during Monetary Policy Committee meeting on Thursday wherein RBI showed interest in launching its digital currency which can be used as a physical currency.
In the view of this, an Interdepartmental committee is formed and an initial report has been drafted. The report is mainly intended towards the feasibility of a fiat digital currency and will be submitted by end of June 2018.
Furthermore, the RBI mentioned that any bank or entities associated with it shall not indulge in providing services to any business entities dealing with cryptocurrencies. Regulated entities already providing such service will be withdrawn within the 3 months of duration.
Despite the restrictions, Central Bank of India also commented positively on the use of financial technologies,
However, we also recognize the potential that blockchain technologies offer in the financial sector. We believe that, despite the risks, its use should be promoted to bring economic benefits.
As a matter of fact, this is not the first time that a central bank engages in discussions on this issue. In early 2016, government bodies from England and China explored the possibility of issuing their own digital currencies. The Bank of Canada also mentioned the benefits of the virtual currency and, at the beginning of 2018, several entities in Malaysia, Taiwan, Poland and Switzerland showed interest in carrying out research on the blockchain system.
For now, it’s not known as how far this implementation will bring in the change in the cryptocurrency ecosystem.Will keep you posted on the improvements in this direction.
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