Indian central bank: doesn't want blockchain to weaken people's confidence and trust in digital payments

Three judges of India's Supreme Court are re-opening today for the case of "crypto and Indian central bank", the last hearing was in August 2019. At a previous hearing, questions were raised about the jurisdiction of the RBI after the bank ban was imposed, and the judge subsequently asked the RBI to respond. In its response, the Bank of India said the agency had "the sole right to operate the currency and credit system in the country." The central bank emphasized that by providing services to exchanges, it exercised its right to ensure currency stability and the "reputation risk" of regulated entities. The central bank strictly opposes the Indian Internet and Mobile Association (IAMAI) 's view that "crypto assets are critical to the blockchain." In addition, although the Reserve Bank of India is open to using blockchain technology, it believes that cryptocurrencies pose risks to users. Invoking its responsibilities, the RBI stated that it must act in the interests of its users because "not everyone can reduce their own risks". At the same time, it cited a report from the 2016 Ratan Watal Commission, which came up with the idea of ​​a digital currency backed by the Bank of India. The RBI said it encourages the use of blockchain technology, but to a certain extent, it "will not undermine people's confidence and trust in digital payments."