According to a report from the local publication The Economic Times on June 20. Due to the current ban of block-based currency transactions, Facebook’s newly announced Cryptocurrency Libra can not be available in India.
Quoting the people familiar with the matter, the report said that social media giants have not applied for approval with the Reserve Bank of India (RBI) to operate their digital currency in the country.
As reported yesterday, a Facebook spokesperson has outline that Facebook’s digital wallet, Calibra, “will not be available in countries banned for US-approved countries or cryptocurrencies,” possibly including Facebook, including India. Prevents its use in some of the largest markets.
The Economic Times has noted that RBI has not confirmed or denied the allegations.
Anirudh Rastogi, founder of local tech-focused law firm Ikigai Law, suggested that if the project is going from a co-worker to a peer (P2P) system. Then the RBI will not be worried about the Libra Facebook. On the other hand, if digital currency was able to negotiate with the external economy, then it would be “exactly the same digital asset which is concerned about the RBI,” said Rastogi.
Facebook released a white paper on June 18 for its Libra cryptocurrency project. According to the paper, Facebook Libra will not be technically assessed for any national Fait currency, and users will not always be able to roam the token for a certain amount of futures. Facebook said in the paper that reserve assets have been selected to reduce instability.
Meanwhile, the Government of India is reportedly considering a complete ban on cryptocurrencies, along with local media reporting that there is a proposal to impose a ten-year jail term for citizens dealing with cryptocurrencies. However, the RBI recently denied any involvement in a draft crypto law that would ban crypto in the country.