India: RBI studies feasibility of digital currencies amid crypto crackdown

India: RBI studies feasibility of digital currencies amid crypto crackdown

FILE PHOTO: The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai, India, February 2, 2016. REUTERS/Danish Siddiqui/File photo

India’s central bank is exploring the creation of a digital currency even as it escalates a crackdown on existing instruments such as bitcoin.

The Reserve Bank of India has set up a panel to study the desirability and feasibility of introducing a virtual currency, and the group will submit its report by the end of June, the RBI said in a statement on Thursday. However, it also said it is banning banks and other regulated entities from providing services to users, holders and traders of cryptocurrencies.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter