Along with the Reserve Bank of India, the news is there that it is exploring the need for the digital version of the fiat currency. The stakeholders of cryptocurrency have called for moving one step further in the direction to make the fintech ecosystem stronger in the country.
The RBI came up with the remarks in the booklet with the title “Payment and Settlement Systems in India,” released this week.
“Private digital currencies (PDCs) / virtual currencies (VCs) / cryptocurrencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been skeptical about these currencies and are apprehensive about the associated risks,”- the booklet says.
RBI is also exploring the possibilities to see if there is any need for the fiat currency digital version or not. If there is any, then in such cases, operationalize it properly.
The industry of cryptocurrency in India is welcoming this move.
These kinds of moves are going to help India to take part in the emerging market. This will help in being the key player in the ecosystem of fintech. Along with the rapid growth of cryptocurrency globally, many of the countries are coming up with their own version of digital currencies.
The current softening of RBI with taking a stand for the cryptocurrency is coming after the issued circular by the supreme court last year. It issued barring of RBI with any entity to provide the banking services to anyone who is dealing with cryptocurrencies.
In the booklet, RBI on the payment system said that the central banks in the works are examining if they can leverage the technology and issue any fiat money in digital form or not.
The value for all the cryptocurrencies this year has crossed the $1 trillion mark. The Bitcoins have crossed $40000 marks before touching $30,846.79 on Wednesday.
The stakeholders of cryptocurrency have some expectations for clarification in the coming Union Budget.
Bitex Founder and CEO Monark Modi say like any other financial market that matured in India are owing to the regulations.
The investors of cryptocurrency have similar expectations from the government within this budget, which is going to help in the new market of finance for moving towards certainty.
“India has seen phenomenal growth in cryptocurrency trading volumes as well as the size of the community participating in this alternate investment class. But due to lack of clarity and in the absence of regulations, banks are still hesitant in providing services to the exchanges and have been blocking transactions related to cryptocurrencies, which is impacting the investors,” he added.