Reserve Bank of India Shelves State-Backed Cryptocurrency

The Reserve Bank of India has shelved its plan to launch a state-backed cryptocurrency amidst increased government pressure and concerns around money laundering.

The country's central bank announced it was looking at issuing its own digital currency back in April of 2018 and set up an interdepartmental group to conduct a feasibility study.

An unnamed source told the Hindu Business Line that the government doesn't want to implement a central bank digital currency anymore.

Narendra Modi's government is still refusing to provide any respite for investors or cryptocurrency exchanges.

The Country Still Not Ready for a CBDC. The Reserve Bank of India has echoed the parliament's stance, refusing to ease pressure on the industry.

The central bank has banned banks from servicing cryptocurrency exchanges, companies, and traders, effectively stifling the industry.

The bank's plan to launch its own central cryptocurrency was well received, with many thinking that the move could pave the way for other digital currencies to enter the market.

The Reserve Bank planned on using the CBDC to tackle money laundering.

The RBI still doesn't have a formal unit in place that would track and format policies on cryptocurrencies or blockchain, which is indicative of a general lack of preparedness.

Praveen Kumar, the founder of cryptocurrency exchange and blockchain start-up Belfrics, told the Hindu Business Line that it's is still too early for RBI to issue its own cryptocurrency and that delaying the process was the right decision.