Despite the fact that crypto rupee is designed to launch soon, strict Indian crypto regulations are proposed by the government. One of the laws suggests that possession of crypto coins in India will be punished by a prison sentence. The Reserve Bank of India has already prohibited crypto-assets.
Crypto coins do have a bad reputation, which is possibly well deserved. However, not all digital currencies that utilize blockchain are equal. On the other hand, anti-money laundering laws should be put in place.
A distinguished class of crypto coins is stablecoins that are connected to fiat money, controlled by banks or other entities. With the use of stablecoins, it is possible to participate in foreign transactions not using the USD.
The creation of a large payment system that doesn’t utilize the USD is a highly political issue, since the United States, because of dollar, possesses great power over the financial world.
However, the creators of the system may run into certain technical issues that can be solved by using a distributed public ledger: Blockchain. This innovative technology in the near future will take a leading role in solutions for international transactions.
Rather than banning crypto-assets, the Indian government should collaborate with other entities in order to create a functional payment system.