As soon as cryptocurrencies surfaced, they were lapped up by people globally. Here was this unregulated virtual currency, which was helping people cash out in millions.
However, as time went by, stories of cryptocurrency firms evaporating overnight along with their investor’s money started cropping up. Resultantly, public opinion started swaying against this, and banks started issuing directives banning the practice of paying for bitcoins through their portals.
The RBI has spoken of launching their version of centralised digital currency, on the same blockchain bitcoin model. The Government had hinted that the sudden cryptocurrency growth unnerved them, as they were unable to regulate the decentralised cryptocurrencies, thus forcing them to take the extreme step of banning banks from transacting cryptocurrencies.
But launching their crypto coin would enable them to have end-to-end control. According to Niranjan Patil, a Bengaluru-based cryptocurrency expert, the RBI had stated in April’s first week that the government is working on its crypto coin too.