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RBI Plans to Launch New Cryptocurrency, and Ask for Banks to Stop Dealing With Cryptocurrency

RBI plan to launching new cryptocurrency

Reserve Bank Of India (RBI) is interested to launch new cryptocurrency, In recent First Bi-monthly Monetary Policy Statement RBI state that they are planning on launch new cryptocurrency, but some banks are still not supporting to this step taken by RBI, RBI set a constituted group to study and provide guidance on the desirability and feasibility to introduce new central bank cryptocurrency. The report will be submitted by an end of June 2018.

Today rising the cost of managing fiat paper/metallic money and also rapidly changes in the payment industry along with the emergence of private digital tokes have led RBI taking this step to planning to launch new crypto asset, this is one good step to monitoring the fund flowing into Crypto market and better way to collect tax and also to prevent fraudulent activities by making RBI crypto asset compulsory treated as fiat money.

RBI Ask for Banks to Stop Dealing With Cryptocurrency

To improve efficiency and inclusiveness of financial system and also considering consumer protection, market integrity, and money laundering, among others, mainly considering these factors RBI cautioned users, holders and traders of virtual currencies including Bitcoin that No entities regulated by RBI shall not deal with those who provide such virtual currency services.

BP Kanungo Deputy governor.RBI
says “Entities regulated by RBI shall not deal with or provide services to any individuals or business entities dealing with or setting virtual currencies. Regulated entities which already provide such services shall exit relationship within 3 months.”

Indian crypto exchanges now not able to use payment services of Indian banks means now Indian traders not able to withdraw money in Indian rupees, it is better to wait till RBI launching its own virtual currency to use as fiat money to trade or invest.

also, see RBI document.

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