After giving a cold shoulder to cryptocurrencies for years, India’s central bank is finally set to launch its own digital currency, and investors in the country have a reason to cheer.
On July 22, Reserve Bank of India (RBI) deputy governor T Rabi Sankar said the regulatory body is considering introducing a central bank digital currency (CBDC) in a phased manner. A CBDC is a legal tender issued by a central bank in a digital form. In effect, it is just a digital version of the fiat currency, which in India’s case is the rupee.
This means a CBDC is not the same as private virtual currencies such as bitcoin, ether, or dogecoin.
In the past, the RBI and the Indian government have had a tough stance on cryptocurrencies. In fact, not too long ago, banks in the country were temporarily barred from dealing in digital coins.
While the announcement about CBDC does not exactly mean that the RBI has changed its heart about cryptocurrencies of all kinds, it might benefit the entire ecosystem.
