Can we see the Indian Government launching a CBDC or an indigenous payment platform as the Government finally pays the attention to the growing crypto-community?

With the highest number of crypto owners globally, more than a billion people, India is becoming a crypto-leader in the coming times. However, the fear is creeping within the investor community as the Indian government plans to regulate and even ban some cryptocurrencies within the country.

And with the news of the Indian Parliament wanting to replace the old SWIFT payment service with a new Indian indigenous alternative to protect the privacy and data of millions of Indian users connected to SWIFT via more than 40 Indian Banks.

The Joint Parliamentary Committee on Personal Data Protection Bill strongly supports the privacy of individuals and has requested that the Centre take "concrete actions" to ensure that India receives a copy of all sensitive and critical personal data held by foreign entities.

The government will present a bill banning all "private" cryptocurrency in India during the winter session. This bill will be up for debate and approval by Parliament. The winter session begins on November 29.

The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 also seek a framework to allow the Reserve Bank of India to issue an official digital currency.

According to the Lok Sabha bulletin, the article stated that it is one of 26 pieces currently under consideration by Parliament during the winter session. The bill would ban all private cryptocurrencies in India. It allows for some exceptions to promote cryptocurrency's underlying technology and its uses," stated the Lok Sabha bulletin.

The Parliamentary Committee that is examining the Personal Data Protection Bill 2019 suggested that the Parliament would also like to establish a program to create an alternative to SWIFT to improve the economy and protect domestic financial data. To understand better about the matter, read ahead to know more SWIFT.
<h2>What is SWIFT?</h2>
<img src="https://assets.website-files.com/5f87fc6616cb64689cbb2823/60241bcf39c386b1cb05361d_otTCCjjh9KIHsNCy9X5FqdicNuDh1IdWCfd-bUIbgt8dlJqP-ct6Na3DcvajGWdnm8t_iqJVooWmVCa1asEsXKor0nZknrN2M8PZKrZ1COJ95UsnrVSDX0Yun_GSymDJePMATT0R.png" alt="SWIFT Meaning In Banking: What Is It?" />

SWIFT is a network that allows financial institutions to exchange and receive information on financial transactions worldwide. The SWIFT network transmits over 5 billion financial messages annually.

The panel recommends that an alternative, the indigenous financial system is developed following the model of similar systems in other countries such as Ripple in the USA, INSTEX in the European Union, etc.

"The Committee observes that data protection in the financial sector is a matter of genuine concern worldwide, particularly when privacy has been compromised widely through the SWIFT network. Indian citizens are engaged in huge cross-border payments using the same network," the panel said in its report.

"The recommendations are valid. India is moving from cash to digital settlement mode. Government should start by creating a framework for setting up infrastructure for such an entity. It will make the implementation faster," said Ashvin Parekh, managing partner, Ashvin Parekh Advisory Services.

This news comes a week following a Parliamentary Committee on Finance meeting, headed by Jayant Sinha (BJP MP) and ex-union minister. The committee heard that cryptocurrency is here to stay and that it is up to regulators to regulate it.

Sinha said afterward that the meeting was intended to get a better understanding of the market. "The committee has taken no view, and this meeting was essentially to gather information from the industry and understand the landscape of cryptofinance," he said.

He stated that the committee had heard exchanges about various aspects of the users, total investments, and their user base. He claimed that 15 million users were registered and had invested INR 600 crore.
<h2>Conclusion</h2>
With the news of the Indian government planning to bring multiple significant changes in the Indian crypto-sector, the overall sentiment is turning slightly towards fear. 

However, the government plans to regulate multiple cryptocurrencies and ban only a few coins, which provide privacy to the user's transaction. Furthermore, the plans to make an indigenous alternative to the SWIFT for smoother and safer remittance services hint that the government may release its own CBDC or a global payment solution like Ripple in the USA. 

The plans may not be clear about how India will adopt the crypto, but investors can be sure that the Government shows no intention to strike down on the crypto-world. And, on the contrary belief of investors filled with fear, the launch of a CBDC or an indigenous payment solution will drive the markets to a new height worldwide.

Is India Secretly Planning To Launch A New Global Payment Solution?

With the highest number of crypto owners globally, more than a billion people, India is becoming a crypto-leader in the coming times.

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

Is India Secretly Planning To Launch A New Global Payment Solution?

Top Picks