Earlier this week, we learned the Reserve Bank of India had formed a unit last month to study “emerging” technologies including cryptocurrencies, blockchain and artificial intelligence, according to two sources quoted by India’s Economic Times.
Now the central bank, which banned cryptocurrencies in July, has said in its 268-page annual report that it is considering whether to create a statecoin that would be the digital equivalent of the Indian rupee. To that end it has set up another committee to study the situation.
Other countries have created, or are considering creating, a statecoin for various reasons. Here is the Reserve Bank’s reason, according to CCN: “Rapid changes” in the global payments industry bought on by disruptive factors like the “emergence of private digital tokens and the rising costs of managing fiat paper/metallic money.” Read more here.