After the news of banning of the crypto currencies in India, Indian government has gone one step ahead and said that the government will explore the use of blockchain technology for digital economy.
This is a very interesting development in the wake of Reserve Bank of India (RBI) mentioned plans to bring a digital version of the Indian Rupee. The central bank was exploring the possibility as to whether there was a need for a digital version of fiat currency, and in case there was then how to operationalize it.
The government announcement will explore the use of blockchain technology for digital economy.
In April 2018, the RBI had effectively banned cryptocurrency transactions via banks and e-wallets in the country. It was initially supported by the Supreme Court, though the top court later quashed the ban in March last year.
In my previous post, I have written that India is Looking to ban the private cryptocurrencies where i mentioned that the government listed a bill titled “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” that is aimed to provide a framework for creation of an official digital currency to be issued by the RBI and prohibit all existing “private” cryptocurrencies.
Now it has become crystal clear that the purpose of the ban was to introduce its own digital and centralized currency.
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