#BTC (India)

India prepares for total Bitcoin ban😱

In a landmark statement, top Indian regulators and institutions consulted by the government have advocated a ban on private cryptocurrencies like Bitcoin and Ether, favoring the Central Bank Digital Currency (CBDC).

India strengthens its stance against Bitcoin

In July 2024, several Indian government experts spoke out in favor of a possible ban on private cryptocurrencies like Bitcoin and Ether, during preparatory consultations. According to a senior official who wished to remain anonymous, “CBDCs can do everything that cryptos do, with more benefits and less risks.”

India’s position is in line with the recommendations of the G20, of which India is a member. Indeed, the country adopted in September 2023 the IMF and Financial Stability Board (FSB) position paper, which authorizes member countries to impose strict restrictions on crypto, including a possible total ban.

Indian authorities nevertheless emphasize their interest in blockchain technology, which they wish to exploit for socially beneficial uses such as the tokenization of government securities and the targeted allocation of subsidies.

The digital rupee as a credible alternative?

The growing success of the digital rupee (e₹) pilot project strengthens the government’s position. Launched in November 2022 for the wholesale segment and then extended to the retail segment in December, the Indian CBDC now has more than 5 million users and 16 participating banks.

The State Bank of India (SBI) has already demonstrated the practical potential of CBDCs through an innovative pilot project in Odisha and Andhra Pradesh. This program allows tenant farmers to access loans specifically programmed for the purchase of agricultural inputs.