Expansion in rural and urban areas with minimal or no internet connectivity could be supported by the implementation of offline solutions.
Introducing Offline Features to Support Digital Rupee
Governor of the Reserve Bank of India (RBI) Shaktikanta Das announced that the central bank will explore offline solutions to support the adoption of its central bank digital currency (CBDC), the digital rupee, particularly in remote areas with limited internet access.
Plans for Offline Feature Implementation
As part of this initiative, various offline solutions for hilly, rural, and urban environments, including proximity-based and non-proximity-based solutions, will be considered, as reported by the Press Trust of India. During the monetary policy review on February 8, the RBI governor stated:
"We propose to introduce an offline function in CBDC-R, which will enable transactions in areas with poor or limited internet connectivity. These functions will be gradually introduced through pilot programs."
Offline Features and Future Plans
Plans to implement offline features were first introduced in March 2023, when Ajay Kumar Choudhary, RBI's Executive Director, stated that the central bank is exploring CBDC possibilities for cross-border transactions and integration with older systems in other countries.
Objectives and Vision of CBDC in India
While the digital rupee is undergoing testing for offline capabilities, other payment methods such as the popular Unified Payments Interface (UPI) already offer offline options. Siddharth Sogani, CEO of the Indian blockchain analytics firm Crebaco, emphasized that the primary goal of CBDC is to increase money monitoring and eliminate cash from the system.
Conclusion
RBI launched the pilot operation of its retail CBDC in December 2022 and achieved the goal of one million transactions per day in December 2023. Both developing and developed economies share the motivation behind their CBDC projects: financial stability and the efficiency of cross-border payments. However, developing countries also hope that CBDC will strengthen financial inclusion.
#India #CBDC #crypto

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

1. The FIU in India takes action: 9 top crypto exchanges, including Coinbase and Binance, blocked.
2. Concerns raised by the FIU encompass money laundering, terrorism financing, and risks to Indian users from unregistered exchanges.
3. India aligns with global trend: tightening regulations on crypto, following the steps of the US, China, and the UK.
4. Impact on India’s 15 million crypto users: limited trading options due to FIU’s move.
India has recently taken a firm stance against the crypto industry. The country's Financial Intelligence Unit (FIU) declared plans to expel nine major exchanges, including big players like Coinbase and Binance, due to violations of anti-money laundering and anti-terrorism financing laws.
The FIU's statement pinpointed these exchanges for failing to comply with registration and adherence to the Prevention of Money Laundering Act (PMLA) of 2002, raising concerns about their engagement with nearly unregistered users. This poses heightened risks of funding illicit activities like terrorism and money laundering.
Consequently, the FIU urged the Ministry of Electronics and Information Technology to block access to nine cryptocurrency exchanges' websites until further notice, namely Bittrex, Bitsamp, MEXC Global, Bitfinex, Gate.io, Kucoin, Huobi, Kraken, and Binance.
This move aligns India with other nations' tightening regulatory approaches toward the crypto sector. This trend echoes actions taken in countries like the US, where Binance faced hefty fines and its CEO, Changpeng Zhao, confronted legal repercussions for anti-money laundering violations. Global concerns about consumer safety, financial stability, and national security have been the driving force behind these measures.
Despite these challenges, the crypto industry persists. Some exchanges are striving to obtain licenses from governing bodies, while others, like PancakeSwap and Uniswap, opt to function as decentralized entities without the need for intermediaries.
Nonetheless, the FIU's decision to shut down these exchanges in India significantly impacts the approximately 15 million crypto users in the nation, according to a recent Chainalysis report. It's essential to acknowledge the volatility of cryptocurrencies and conduct thorough research before making any financial decisions.
#India #IndiaCrypto #Binance #coinbase #Crypto2024

- High taxes in India and the US have deterred new investments and interest in crypto, stifling innovation in these markets.
- Russia's crypto ban is pushing developers towards black markets, potentially strangling legitimate crypto development.
- China's 2017 crypto ban has led to a tepid ETF market, reflecting the long-term impact on innovation and investment in the sector.

The United States boasts the largest cryptocurrency market in the world, with its ETF market cap surpassing $72 billion as of May 14, 2024, driven by strong demand. Nevertheless, the US government has taken extensive measures to stifle the growth of the domestic crypto economy.
One significant move was New York's two-year ban on crypto mining, enacted despite the fact that much of the energy for crypto mining in the US is sourced from renewable resources. The New York Department of Financial Services implemented this ban, reflecting some of the toughest anti-crypto policies in the nation.
For those unfamiliar, crypto mining, particularly through proof of work, is a critical method for securing blockchain networks against hacks and exploits. This technology has ensured Bitcoin's resilience and security over the years.
In addition to the mining ban, there is a proposal to increase taxes on the electricity supplied to crypto miners by 30%, a move that would render Bitcoin mining economically unsustainable. This tax, introduced by the Biden administration, is referred to as the Digital Asset Mining Energy Tax (DAME).
Looking internationally, India imposed a 30% income tax on crypto earnings starting in April 2022, one of the highest such taxes globally. This law does not allow for offsetting profits with losses, meaning a $100 profit and a $100 loss in crypto transactions still incurs a $30 tax. This has severely impacted the crypto ecosystem in India, particularly harming NFT developers and entrepreneurs, leading to the decline of advanced NFT token standards like ERC 1155 and ERC 6551.
In Russia, the government has almost completely banned cryptocurrency to support the ruble, as reported by Anatoly Aksakov, Chairman of the Committee on Financial Affairs. While crypto mining is still permitted due to its potential to generate foreign exchange, the broader ban has adversely affected developers reliant on cryptocurrencies like Ethereum and Solana. This has also led to the rise of black markets and financial crimes, as many are forced to turn to these illicit avenues to redeem their earnings.
China's crypto ban from 2017 continues to have long-term repercussions. On April 30, 2024, Hong Kong launched its first spot Bitcoin ETF. However, investor confidence was low, influenced by the lingering fear of the 2017 crackdown. The ETFs attracted only $112 million on their first day, starkly contrasting with the $4.6 billion inflow seen by US spot Bitcoin ETFs on January 11, 2024.
Disclaimer: Voice of Crypto aims to provide accurate and current information but is not responsible for any missing facts or inaccuracies. Cryptocurrencies are highly volatile financial assets, so please conduct thorough research and make informed financial decisions.

#Russia #China #India #US #Crypto2024