India’s Central Bank considers creating a digital currency

According to a top official at India's central bank, the country's central bank is considering creating a digital currency. T Rabi Sankar stated at a press conference today that the central bank was exploring a "phased" introduction of the country's digital currency while legal reforms to the country's foreign exchange rules and IT legislation are enacted.

According to Sankar, central banks are paying more attention to digital currencies. For "quite some time," the central bank has been considering the benefits and dangers of issuing a sovereign CBDC. In 2018, an Indian government commission suggested that all private cryptocurrencies be banned, with offenders facing up to ten years in prison.

India has signaled that it intends to pass legislation prohibiting the use of private cryptocurrencies. Several exchanges and dealers objected to the proposal, filing a case at the Supreme Court. Last year, the country's highest court found in their favor, although the decision has yet to have an influence on the earlier circular's policy implications.

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