The Reserve Bank of India is currently exploring the possibility of issuing fiat cryptocurrency, executive director Sudarshan Sen said recently while addressing the India Fintech Day conference.
The Economic Times quoted Sen saying:
"Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely.”
However, Sen said that the central bank is not very comfortable when it comes to non-fiat cryptocurrencies. He said:
“As regards non-fiat cryptocurrencies, I think we are not comfortable...Bitcoins for example. That's a private cryptocurrency."
The RBI has always maintained a cautionary approach towards cryptocurrencies such as bitcoin. Earlier this month, the central bank cautioned a parliamentary committee against potential bitcoin misuse.
From Sen’s recent comments it seems that the RBI has also embarked on exploring the central bank issued digital currency (CBDC). The Bank of England, the People’s Bank of China, and the Bank of Canada have already started exploring and experimenting with CBDCs.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
