Fun

India’s Central Bank RBI Close to Digital Currency Decision as Paypal Exits Indian Payments Market

News Feed - 2021-02-06 10:02:32

India"s Central Bank RBI Close to Digital Currency Decision as Paypal Exits Indian Payments Market


The Reserve Bank of India (RBI) is actively working on a digital currency and will make a decision “very soon,” the central bank has reportedly confirmed. Meanwhile, payments giant Paypal is shutting down its payment services within India. RBI Near Digital Rupee Announcement


As the Indian government prepares to introduce the cryptocurrency bill that seeks to both ban cryptocurrencies and create a regulatory framework for the digital rupee to be issued by the RBI, the central bank has made an announcement of its own.


RBI Deputy Governor B. P. Kanungo said Friday: An internal committee is taking a close look to decide on the model of the central bank digital currency and you will hear from the Reserve Bank very soon in the matter.


RBI Governor Shaktikanta Das also spoke about digital currency Friday. “With regard to digital currency, I think we have already released our document,” he told reporters. “Our digital payment document spells out that digital currency is work in progress in RBI.”


The RBI governor likely referred to the “Booklet on Payment Systems” that the central bank published last week. In the document, the RBI recognized that cryptocurrencies have gained popularity in recent years and clarified that it “is exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalise it.” Paypal Exiting Indian Domestic Payments Market


Another change in the Indian payments market is the exit of global payments giant Paypal, which has announced that it is shutting down domestic services within India. The Hindu Business Line reported Friday that Paypal’s decision came at a time when digital transactions are hitting new records every month.


A Paypal spokesperson said, “From 1 April 2021, we will focus all our attention on enabling more international sales for Indian businesses, and shift focus away from our domestic products in India,” adding: This means we will no longer offer domestic payment services within India from 1 April.



The San Jose, California-based company launched its domestic operations in India in 2017 and its trouble with the RBI began in 2011 when the central bank asked the company to comply with Foreign Exchange Management Act 1999, the publication conveyed.


Paypal was gearing up to roll out its UPI platform when the National Payments Corporation of India (NPCI) imposed a new set of rules in November last year. The rule states that “third-party applications providing payments services via UPI can process a maximum of 30% of the transaction volumes starting Jan. 1, 2021,” the news outlet explained, speculating that “This seems to have been the nail in Paypal’s plans for India.”


Do you think the RBI should issue a digital currency? Let us know in the comments section below. South African Regulator Warns Crypto Investors to "Be Prepared to Lose All" Following Collapse of Bitcoin Trading Company MTI REGULATION | 1 day ago Indian Crypto Industry Launches Campaign Urging Lawmakers to Dismiss Crypto Ban Bill REGULATION | 2 days ago Tags in this story Crypto regulation, digital rupee, indian crypto, indian cryptocurrency, paypal exit india, private cryptocurrencies, rbi crypto, rbi digital currency


Image Credits: Shutterstock, Pixabay, Wiki Commons Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Swiss Financial Watchdog Proposes $1,000 Client Identification Threshold for Crypto Transactions
Swiss Financial Watchdog Proposes $1,000 Client Identification Threshold for Crypto Transactions Famous for its favorable business climate that has attracted hundreds of crypto c
Ethereum Classic 51% Attack: Okex Crypto Exchange Suffers $5.6 Million Loss, Contemplates Delisting ETC
Ethereum Classic 51% Attack: Okex Crypto Exchange Suffers $5.6 Million Loss, Contemplates Delisting ETCCryptocurrency exchange Okex reveals it suffered the $5.6 million loss as a re
Bitcoin, Ethereum Technical Analysis: BTC Lower, Following Brief Rally Above $25,000
Bitcoin, Ethereum Technical Analysis: BTC Lower, Following Brief Rally Above $25,000 Bitcoin was trading lower to start the week, after the token briefly rose above $25,000 during
Ana Paula Pereira6 hours agoBrazil’s crypto regulatory environment is driving competitiveness — Coinext CEOBitcoin maximalist José Ribeiro, CEO of crypto exchange Coinext, spoke with Cointelegraph at the Web Summit
Insanely bullish facts and figures about how the bull market may play out
Brayden Lindrea5 hours agoInsanely bullish facts and figures about how the bull market may play outBitcoin is currently priced at $68,300, a mere 1% off its all-time high of $69,000.4618 Total views8 Total sharesListen t
Bitcoin Long-Term Holders Are Buying Again — Can They Push BTC Price Higher?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Economist Peter Schiff Expects Worse Financial Crisis Than 2008 — Says ‘Future Rate Hikes Are Now Pointless’
Economist Peter Schiff Expects Worse Financial Crisis Than 2008 — Says "Future Rate Hikes Are Now Pointless" Economist Peter Schiff has warned that the current financial crisis w
XRP Battle Between Bulls And Bears Hinges On $1.97 – What To Expect
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Tom Mitchelhill6 hours agoTime to ‘pull the brakes’ on Ethereum and rotate back to Bitcoin: K33 report“The gravitational pull in crypto for the time being stays in BTC,” said K33 senior analyst Vetle Lunde.5703 T
Defiance CEO ‘Completely Bullish on Bitcoin’ — Says It’s ‘a Good Time to Get in’
Defiance CEO "Completely Bullish on Bitcoin" — Says It"s "a Good Time to Get in" The head of Defiance ETFs says she is “completely bullish on bitcoin.” Noting that
Dollar-Cost Averaging Crypto Profits: Low-Risk Bitcoin Investing Without All the Stress
Dollar-Cost Averaging Crypto Profits: Low-Risk Bitcoin Investing Without All the Stress Bitcoin prices and a number of other digital assets have grown significan
The Majority of Game Developers Are Beginning to Include Blockchain in Their Games According to Study
The Majority of Game Developers Are Beginning to Include Blockchain in Their Games According to Study Most game developers in U.S. and U.K. are now using blockchain elements in the