The Reserve Bank of India (RBI), which is the central authority overseeing banking in India, has set up its own fintech division to help develop regulations for cryptocurrencies and their future Central Bank Digital Currency (CBDC), Coindesk reports.
RBI’s past with cryptocurrency
Of course, the department is supposed to oversee the “New Age Challenge” that arises from fintech applications, and crypto is only part of that job. That is, the department oversees cryptocurrencies and their challenges, but not necessarily the first agenda.
The RBI, especially its governor Shaktikanta Das, is one of the voice opponents of the Indian cryptocurrency. he has issued several warnings about the use of cryptocurrencies in the country, raising concerns about the increased wealth invested in crypto trading in India.
An accurate estimate of the total number of Indian crypto traders and users is not readily available, but claims that the country’s largest crypto exchange has millions of users.
Where does India’s crypto legislation stand?
India has also enacted legislation regulating cryptocurrencies for almost a year. The bill in question was the first agenda item for the January 2021 Parliamentary Budget Meeting, but was not submitted at the next meeting.
The RBI’s move could be good news for the industry, which has been demanding crypto regulations for some time.