RBI Issues Circular On Levying Unfair Interest Charges On Customers

Cryptocurrency has been the most remarkable contribution to whet the speculative appetite of mankind in many years. Though periods of exuberance in speculation have marked human history down the centuries from the Dutch tulip mania to the dotcom bubble, nothing took the entire world by storm as the cryptocurrencies have. While traditional investors have been wary of the crypto space, some experts have flagged it for excessive speculation and risk, while others such as Elon Musk, the boss of electric vehicle manufacturer Tesla even said that his company would accept payment in Bitcoin, the most famous of all cryptocurrencies. In June El Salvador become the first country to formally accept Bitcoin as a legal tender. Singapore, China, Ecuador, Senegal, and Tunisia have issued their own cryptocurrencies. While cryptocurrency began getting legitimacy from different governments on the one hand, on the other, a lot of volatility was noticed in its prices.

At this crucial juncture Reserve Bank of India has announced that it is preparing to launch its own digital currency. The move is welcome since it would do the Indian investors a lot of good. Investors in the cryptocurrency have suffered from an air of extreme uncertainty around the new and completely unregulated asset class.

The digital currency will undoubtedly be sovereign in nature and would complement the existing basket of currencies and offer diversity in the bouquet. In an environment of volatility in an unpredictable asset class, the “official” digital currency can add a welcome dash of stability with the signature of the state.

It can be expected that the official currency would also expedite the much-awaited legislation in the crypto space, setting things right for the anxious investor, especially the young ones, who have found an outlet for the rush of adrenaline in this space. The official digital currency can coexist with other cryptocurrencies.