India Considers Adoption of Central Bank Digital Currency (CBDC) Amid Possible Ban on Decentralized Cryptocurrencies Like BTC

India contemplates banning privately operated digital currencies such as Bitcoin(BTC) and Ether(ETH). To replace these cryptocurrencies, India could adopt a Central Bank Digital Currency (CBDC).

This move reflects several concerns about the risks of decentralized digital assets in India. Additionally, CBDC could provide similar benefits to cryptocurrencies. However, CBDC will offer more control while minimizing risks.

According to Indian regulators, the digital rupee has huge potential to solve the financial innovation problem without compromising economic stability. On the other hand, the state-backed digital currency is supposed to provide a much safer solution.