Cryptocurrencies banned in India: The Central Bank Issues an official statement

The Reserve Bank of India (RBI) has issued an official statement to make it clear that Bitcoin and related digital assets have been banned in the country. On the country, the statement said that the Central Bank is planning to launch its own digital asset.

The Central Bank’s digital currency will serve the purpose of handling as well as regulate the fiat currency. The information released on the same was not very detailed but further communication will be given out in June this year. The RBI has decided not to have any relations with all entities dealing with cryptocurrencies. Consequently, the crypto entities have been given three months notices to halt their operations.

Cryptocurrency enthusiasts in India have expressed their disappointment with the Central on social media platforms; some blaming the RBI for being afraid of finding working solutions. A blockchain lawyer in India has complained saying:

 “Isn’t it ironical that RBI is testing the feasibility of own Digital Currency, but not allowing entities controlled by it to deal with cryptocurrencies blockchains Bitcoin.”

Earlier in the year, India’s Finance Minister, Arun Jaitley gave a statement on the volatility of cryptocurrencies and hinted that the digital assets will be banned. A quote from his speech reads:

“The government does not recognize cryptocurrency as legal tender or coin”