Central Bank of India to regulate crypto and 2 national CBDCs
The Reserve Bank of India is working to bring regulation on the CBDC and Crypto exchanges.
Right now the crypto industry is still in the grey region in India but recent movements and activities by the Indian finance ministry confirmed that India is looking to bring regulation on this industry. Around a couple of months ago, Indian finance minister Nirmala Sitharaman tried to bring a crypto bill but later reports confirmed that there is more work pending to be done.
The latest report is coming from crypto news website Coindesk, that Reserve Bank of India is working to create a separate department dedicated to the Fintech-related activities regulation.
Reportedly, the newly created department of the RBI will work on the creation of new rules and regulations on the crypto industry, and also it will create a framework for the Central Bank Digital Currency of India.
The report also claimed that RBI will issue two CBDC. One will be allowed for the special banks and financial institutions and the second one will be for the retail users.
Ajay Kumar Choudhary will lead the new department, who is currently Chief general manager at Reserve Bank of India ( RBI).
“You can expect much more action from Mr. Ajay Kumar Choudhary towards the central bank digital currency. This may signify a shift from the RBI’s stance towards fast-tracking CBDC piloting,” said a source with knowledge of the matter.
The department will figure out the main challenges because of the application of blockchain technology, especially because of cryptocurrencies adoption and legalization.
It is worth noting, RBI and its Governor Shaktikanta Das many times raised their voice against the crypto industry and increased money circulation because of crypto use. This is the first time in the history of India when there was news from the RBI that it will work on the regulation instead to create rules to ban or kick out crypto from the nation.
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