India is considering a potential ban on cryptocurrencies like Bitcoin and Ether while exploring the adoption of a Central Bank Digital Currency (CBDC), according to reports from Tuesday, October 22, 2024.
This shift follows government concerns about the risks associated with private cryptocurrencies, with authorities believing CBDCs can offer similar benefits with fewer risks.
The Hindustan Times reported that Indian regulators, after consulting key institutions, are increasingly inclined to ban cryptocurrencies.
Meanwhile, the Reserve Bank of India (RBI) is promoting its retail CBDC, but current transaction volumes—around 18,000 daily—are well below the RBI’s target of one million by year-end.
To encourage adoption, the RBI is developing features like offline transactions and integration with the Unified Payments Interface (UPI).
Ajay Seth, India’s Secretary of Economic Affairs, mentioned that an inter-ministerial group, including the RBI and the Securities and Exchange Board of India (SEBI), is drafting a policy paper on cryptocurrencies.
