The cryptocurrency trend can be, at best, described as a roller coaster, one that is brand new and fancy. At first it looks like a good idea to hop in for a ride, so you excitedly tell everyone that you’re gonna go for it. But as soon as you get closer and analyze it, you think to yourself, that this just might not be a good idea after all. And that is exactly what India did.
Previously, India had plans to issue a state-backed cryptocurrency however; just a few months after the indications considering the idea were given by the country’s central bank, the plan has been stalled. Apparently, the government’s interest in the state-backed digital rupee has withered away. According to the report in The Hindu Business Line, the reason behind the idea being discarded for now is because of the prematurity.
The government doesn’t want the digital currency any more. It thinks it is too early to even think about a digital currency.
As it turns out, many of the leading blockchain experts of the country are hailing this as a wise decision. Kunal Nadwani, who is a blochchain expert and the chief executive of uTrade Solutions, is one of those people. He believes it’s a smart move considering that the ‘economic effects of crypto are sizeable and largely unknown’.
In addition to Nadwani, Parween Kumar is also backing up this decision. Parween Kumar is the founder of Belfrics, which is a cryptocurerncy exchange with a dominating presence in the regions of Asia and Africa. Kumar believes that India should wait and observe the repercussion of such a decision by allowing smaller yet advanced nations like Singapore and United Arab Emirates, to experiment with crypto before they make the dive for a crypto-rupee.
It is premature for RBI (Reserve Bank of India) to launch crypto-rupee, as more understanding of the crypto economy needs to be achieved. It is a right decision to delay the process and see how the publicly traded peer-to-peer economy is shaping up
This step back is happening five months after it was reported that the Reserve Bank of India (RBI), was exploring the possibility to launch a Central Bank Digital Currency (CBDC). The purpose of which was intended to facilitate domestic payments, as per the annual report that was released last year, back in August.
India is Exploring a Central Bank Digital Currency for Payments https://t.co/sO3QznykOD
— CCN.com (@CryptoCoinsNews) August 30, 2018
Furthermore, the country’s central bank also pointed out the potential usefulness of the CBDC in stemming the increasing costs of managing physical cash as well as checking money laundering. And it was apparently going to be named in honor of the Hindu goddess of wealth and prosperity, Lakshmi. Let’s see if India takes the leap for crypto-rupee anytime soon in 2019.