The Indian central bank Reserve Bank of India (RBI) has established a task force that will assess the possible granting of legal tender status to Bitcoin and other virtual currencies. The central bank is also eyeing to draft a cryptocurrency regulation in the near future. The central bank is also considering digitizing rupee, with an outright dislike for Bitcoin.
This move by the RBI is expected to make India as one of the hottest countries for digital currencies in the near future. However, there is no clear plan of action yet on how the central bank will approach the regulation of the virtual currencies.
How countries are handling digital currencies
A number of governments around the world are currently having a hard time in making an appropriate definition for Bitcoin and other virtual currencies. This is due to the very unique form of this new type of money.
To deal with it, some governments are implementing strict regulations to handle it and as a form of a very cautious approach. Other countries are just allowing the use of the cryptocurrencies without any regulation as this could create more confusion to everyday consumers.
Positive repercussions of the RBI move
Despite the negative stance shown by the Indian government to digital currencies in the past, the move by the RBI showed that the government is adopting an open-minded approach toward regulating the cryptocurrencies. Any decision that will be made by the central bank in the near future is expected to have a major effect on how Bitcoin and other virtual currencies will be accepted in the country.
Many financial industry players expect that the RBI will decide positively on regulating the virtual currencies. However, the central bank is also expected to impose some restrictions on the use of the cryptocurrencies. These expectations are premised on the fact that India stands to benefit substantially if it decides to adopt the various digital currencies.