Is RBI Digital Currency an Alternative to Crypto Currency?

Will the Finance Minister’s statement that all world-famous cryptocurrencies, including Bitcoin, will be banned in the country soon give the green light to the digital version of the Indian currency? Earlier, the Reserve Bank had said it planned to launch a digital version of the Indian rupee. If the project goes ahead, the Indian digital currency will soon become an alternative to the banned cryptocurrency. It is the official digital currency issued directly by the Reserve Bank. Part of this is the decision to ban cryptocurrencies in the country.

Private digital currencies, including Bitcoin, have been gaining popularity over the past few years. The big risk here is the value of rising like a rocket. It is estimated that there are 70 lakh crypto investors in the country.

Bitcoin traded at Rs 38,000 (Rs 24.3 lakh) in January. In mid-February, the value rose to 900 46,900. By February 16, it had reached 50,000.

Suspicion

Because of this, the Reserve Bank and the government have expressed skepticism about the trend of cryptocurrencies. It is in this context that things are advancing as a digital currency under the direct control of the government.

In 2018, the Reserve Bank of India banned cryptocurrency transactions in India and warned banks against it. But in 2020, the Supreme Court overturned the Reserve Bank’s order. A law was drafted in 2019 to impose a 10-year prison sentence for crypto transactions. In 2017, China banned cryptocurrency transactions. Then it introduced its own digital currency. That being said, the support and credibility of Bitcoin investors is growing worldwide. MasterCard and Visa have incorporated Bitcoin into their payment network. Tesla, the world’s largest automaker, has recently invested heavily in Bitcoin. Bitcoin transactions are also allowed for their products.

English Summary: RBI digital currency may be an alternative to crypto currency