Monetary policy review: Banks can't deal with crypto traders, says RBI

Central bank considers issuing digital currency, sets up panel which will submit report by June

The Reserve Bank of India (RBI) has said it is considering issuing its own bitcoin-like digital currency and has instructed financial institutions to cut off business ties with private entities dealing in such currencies.

Central banks all over the world were debating the introduction of a fiat digital currency as opposed to private digital tokens, which were growing in popularity, said the central bank.

A digital currency, if issued, would be in circulation in addition to the paper currency, and reduce the cost of printing currencies, it said.

“While many central banks are still engaged in the debate, an inter-departmental