Reserve Bank of India (RBI) announced it is postponing the launch of the crypto-rupee indefinitely due to cyber-security threats and money-laundering concerns, reports the Hindu Business Line. The Fed made a similar statement regarding the fedcoin just last week.
Last spring, the RBI announced its plans to start its own Central Bank Digital Currency (CBDC) after the introduction of clearer cryptocurrency exchange regulations in India. As it is, the situation of cryptocurrencies remains vastly unregulated, proving the country is nowhere near ready for the launch of its own token. According to the Hindu Business Line source, “The government doesn’t want the digital currency any more. It thinks it is too early to even think about a digital currency.”
“It is premature for RBI to launch crypto-rupee, as more understanding of the crypto economy need to be achieved,” says Praveen Kumar, founder of Belfrics, cryptocurrency exchange and blockchain start-up. “It is a right decision to delay the process and see how the publicly traded peer-to-peer economy is shaping up.”