The plans for issuing a state-backed digital Rupee in India have been postponed despite the interest from the central bank, according to the latest blockchain news coming from the Hindu Business Line.
According to the Hindu Business Line, the government is not interested anymore into issuing a state-backed cryptocurrency since issuing it is ‘’premature.’’ A source pointed out:
‘’The government doesn’t want the digital currency anymore. It thinks it is too early to even think about digital currency.’’
The move to delay the plans received a lot of support from the leading figures in India’s crypto space including Kunal Nadwani who is a blockchain expert and the chief executive of uTrade Solutions who praised the decision because the ‘’economic effects of crypto are unknown.’’
Praveen Kumar, the founder of Belfrics crypto exchange, also supports the decision because he believes that the government should allow smaller nations such as Singapore to experiment first before India does:
‘’It is premature for RBI (Reserve Bank of India) to launch crypto-rupee, as more understanding of the crypto economy need to be achieved. It is a right decision to delay the process and see how the publicly traded peer-to-peer economy is shaping up.’’
The Reserve Bank of India was hoping to launch a Central Bank Digital Currency with the main purpose to facilitate domestic payments. In addition, India’s central bank said that the CBDC would be useful in lowering the costs of managing physical cash and help fight money laundering.
One year before, the whitepaper was published by the RBI where it was pointed out that the blockchain technology is mature enough to support the issuing of a central bank digital currency.
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