India to consider issuing its own digital currency

The Reserve Bank of India (RBI) has started exploring the potential of the digital rupee, according to a report on the country’s payment systems.

The regulator’s experts acknowledged the growing popularity of cryptocurrencies. However, they said authorities remain sceptical about the new assets. RBI noted an average annual growth rate of 12.5% for digital payments.

In general, the Reserve Bank of India is not against central bank digital currency (CBDC), but is in no hurry to issue it either. The regulator is interested in the feasibility of launching and the potential of such a solution, according to the report.

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Recall that in 2018, India banned banks and financial Bitcoin Supreme institutions from providing services to cryptocurrency companies. In March last year, the Supreme Court struck down the restriction.

In December 2020, India’s Central Bureau of Economic Intelligence proposed an 18% goods and services tax on cryptocurrency trading.