TechFlow news, October 23 — According to Cryptonews, the Indian government is considering a ban on private cryptocurrencies such as Bitcoin while actively promoting the adoption of a central bank digital currency (CBDC). As reported by The Hindustan Times, after consultations with multiple key agencies, Indian regulators lean toward implementing a cryptocurrency ban.
A senior official stated, "CBDC can deliver all the functionalities of cryptocurrencies but with lower risks." The Reserve Bank of India (RBI) is actively promoting retail CBDC and aims to increase daily transactions to one million by year-end, up from the current average of around 18,000 per day.
The RBI is developing new features such as offline transactions and plans to integrate the digital rupee with the Unified Payments Interface (UPI). In July, Ajay Seth, Secretary of Economic Affairs, revealed that an inter-ministerial panel is drafting a cryptocurrency policy document, which may include options for stricter measures against private cryptocurrencies.
India’s stance on cryptocurrencies has shifted repeatedly. In 2018, the RBI banned banks from handling crypto transactions—a move overturned by the Supreme Court in 2020. In November 2023, RBI Governor Shaktikanta Das emphasized the potential risks cryptocurrencies pose to India's economy and reiterated support for CBDC as a safer alternative.
