India’s National Blockchain Strategy Draft Calls On RBI To Release A Central Bank Digital INR
The National Institute for Smart Governance (NISG), a non-profit body launched by the government of India, releases its draft strategy on blockchain and cryptocurrencies. According to the official draft, the government of India should work towards releasing a central bank digital currency (CBDC), and a governing body to regulate the blockchain industry.
NISG drafts blockchain industry regulation policies
The committee chartered by the National e-Governance Division (NeGD), under the ministry of electronics and information technology (MeitY), provided a clear policy framework for the governance and development of crypto products across India. The draft states India’s ambitions to become a world leader in tech, and digitalization is heavily impacted by the adoption of blockchain.
The report focuses on regulatory authorities in the country taking a bolder step towards setting the laws governing the blockchain field. It further discourages the continued issuing of public statements in place of having a solid regulatory framework to fall back onto. The draft states,
“Public statements, whether through the press or formal speeches, are helpful but are not official statements of application by the agency. If an agency intends to enforce its laws in new and innovative ways, it must first notify industry stakeholders of its intent to do so and the way in which existing law applies.”
Draft proposes a digital currency to replace the rupee
According to the draft, the NISG proposed a digital central bank currency similar to the rupee, offered by the government, in conjunction with the Reserve Bank of India (RBI). The digital currency is to be built on a public blockchain similar to Bitcoin and Ethereum, allowing other dApps to run on top of it. The official statement reads,
“It is strongly recommended that Government of India along with RBI come out with a Central Bank Digital INR (CBDR) administered over a Public Permissioned Blockchain that processes transactions through a Turing Complete Virtual Machine allowing decentralized applications to run on its platform.”
An extended run for blockchain in India
India securities regulator recently urged the public and private sector to explore blockchain activities for the efficient trading and storage of digital securities market. Furthermore, the widely spread FUD on India banning cryptocurrencies has been debunked by the RBI, which only ringfenced the regulated entities from offering cryptocurrency services.