You may soon be able to use the digital currency, as the government is working on the technology to make it a reality. According to sources, the work on domestic virtual currency is underway and it will also be examined whether the technology can be used for other purposes. According to sources, the report is expected to be prepared by September Also Read - India Soon Going to Have New Central Bank Digital Currency as RBI Explores Possibility | Details Here
The Reserve Bank of India (RBI) also set up a committee in April this year to study the feasibility of introducing a ‘central bank digital currency’, considering the economic efficiency of digital currencies. The report was scheduled to be submitted by end of June. Also Read - Facebook Announces Its Digital Currency 'Libra' Will be Coming in 2020
Moreover, according to sources, the government can release the final guidelines related to cryptocurrencies by the first week of September. The government is in talks with RBI, SEBI and other stakeholders. Also Read - Cryptocurrency Crackdown: Cash Dealings Might Increase in Bitcoin; What Should Bitcoin Holders do After RBI Prohibits Virtual Currencies?
The government has been thinking of a digital currency at a time when it has banned banks from dealing with the cryptocurrency exchanges. On April 6, the RBI gave a three-month window that all banks and RBI-regulated entities should stop transacting with cryptocurrency exchanges. As a result of the RBI directive, all banks stopped dealing with cryptocurrency exchanges from July 6, 2018. As a result of the banking ban, while many exchanges have shut their exchanges, others have started trading on peer to peer basis where money gets transferred directly between the buyer and the seller, without an exchange account in between.
On the trading of cryptocurrency, RBI, Deputy Governor B P Kanungo said in the press briefing in April which followed the two-day meeting of the monetary committee of RBI, “Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time.”