RBI Governor Rules Out Private Digital Currencies But Discussion Underway For A Centralized One

  • No to private digital currencies because currency issuance is a sovereign function
  • Discussions for a centralized digital currency, however, are going on but “Technology has not fully evolved yet”
  • While the EU, France, and Ghana are planning on issuing a CBDC, Japan and Korea don't see a demand for it

India's Central Bank, the Reserve Bank of India (RBI) governor has ruled out the private digital currencies like Libra, asserting government's right over this function. Saktikante Das told reporters on Tuesday:

“The world over, central banks and the governments are against private digital currency because currency issuance is a sovereign function and it has to be done by the sovereign.”

Das, however, said that discussions are underway for a centralized digital currency but it’s too early to share any specifics about it. But he assured that the RBI is indeed looking into this. The governor said:

“It is very early to speak on a central bank issuing digital currencies. Some discussions are going on. Technology has not fully evolved yet. It is still in very incipient stage of discussions and at RBI we have examined it internally.”

Discussions have been held with the governments and central banks of other countries for a central bank-issued digital currency but for now, Das said it is too early to talk about. He said:

“As and when the technology evolves with adequate safeguards. I think it is an area where the Reserve Bank will certainly look at seriously at an appropriate time.”

Who else in the Race for a Central Bank-issued Digital Currency?

India’s stance on Libra reflects that of governments around the world. European Union finance ministers agreed on Thursday that private digital currencies like Libra shouldn’t be allowed in the EU until their risks posed by them are fully addressed.

They are also considering to regulate crypto-assets while praising European Central Bank's development on a public digital currency.

In a paper published on Wednesday, ECB said that it would issue its own digital currency if the private sector fails to make cross border payments faster and cheaper.

François Villeroy de Galhau, the governor of the Bank of France, also announced that the central bank is planning to pilot a CBDC for financial institutions in 2020.

Ghana is also in this race as central bank chief, Ernest Addison also said that they could issue a digital form of the cedi, the nation's currency in the “near future.” They are currently in talks to develop a pilot project in a “sandbox environment.”

Amidst this, the Bank of Japan (BOJ) governor Haruhiko Kuroda said there is no demand for a CBDC in the country as “the amount of cash outstanding is still increasing.” However, they are conducting technical and legal research so that it is ready when the need arises in the future.

Just like Japan, the Bank of Korea (BOK) has no immediate plans to issue a CBDC. “Our view is that most Korean people do not feel difficulty in making transactions with current payment methods. Under the circumstances, we do not have to be in a hurry to catch up with the latest trend whose security and stability have not been confirmed,” said an official in charge of digital payment research at the bank.

Also Read: Ghana's Central Bank Governor: Government Could Launch a CBDC in Near Future

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,468FansLike
2,795FollowersFollow
4,232FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Second Half of 3-Yr Bull Market: Ether’s Crazy Run has 90% of its Supply in Profit

This past weekend, the price of Ether went past $400 to as high as about $420, a level last seen in July 2018. This...

Teenage Mastermind Behind the Twitter Hack Owns $3.39 Million in Bitcoin (300 BTC); Bail Set At $725k

The 17-year old Twitter-hack mastermind holds over $3 million in BTC value with only $725,000 set for bail. In a bizarre moment last month, Twitter...

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm. Bitcoin...

Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance,...

Bitcoin’s Wild Weekend Reminiscent of 2017 Bull Rally, ‘Higher Highs Ahead in 2020'

This past weekend, bitcoin had a rough time as the largest cryptocurrency made its way past $12,000 to $12,112 in trading just after midnight...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today