The social media giant’s new cryptocurrency Libra has gotten an early shock from the Indian government. The government of Asia’s third-biggest economy is not excited about Facebook’s crypto project or any digital currency that preceded it.
“Design of the Facebook currency has not been fully explained,” India‘s Economic Affairs Secretary Subhash Garg told Bloomberg on Saturday. “But whatever it is, it would be a private cryptocurrency, and that’s not something we have been comfortable with.”
A virtual restriction on trading digital currencies became effective in India in the first quarter of 2018 when the Reserve Bank of India (RBI) issued a notice to Indian banks requesting that they quit managing any crypto organizations. The Supreme Court of India supported the boycott in an interim request in July that year although exchange between users of cryptocurrency stays lawful in India.
The financial boycott has constrained practically the majority of the exchange companies in the industry in the nation which has led to them closing down their business or having to move somewhere else.
Facebook hasn’t made any effort either to approach the Indian government or the RBI for endorsement to operate Libra in India for now, according to Indian Daily Economic Times after speaking to sources from the organization a week ago.
On the off chance that the past is any sign, the digital currency is probably going to keep running with issues with India’s anti-money laundering(AML) and tax evasion laws — regardless of whether it figures out how to agree on terms with the RBI.
India is right now working on a bill, as indicated by sources, that could ban all crypto use in the nation under the current aversion of illegal tax avoidance act, with prison terms for mining, holding, or selling any cryptocurrency.
Facebook has in excess of 300 million users in India at present and Whatsapp boost in excess of 400 million. The numbers are relied upon to increase further over the coming years, as per statista.
Jefferies Financial Group; the strategist with American financial service provider, revealed to Bloomberg that India would be an essential market for Facebook if Libra somehow happened to succeed.
With Libra previously confronting confrontations from government authorities over the globe, an automatic ‘no’ from the Indian government should kill Facebook’s digital money aspiration in its earliest stages.