Facebook’s cryptocurrency Libra may not be started in India, based on a The Economic Times report. The social media giant is expected to launch the digital coin in 2020.
Sources told the newspaper that Calibra, Facebook’s digital wallet, will not be available in countries where cryptocurrencies are banned. At present , regulations in India do not allow its banking network to undertake any type of blockchain transactions. Calibra, which is going to ‘work on WhatsApp and be available globally’ , will also be unavailable in countries where Facebook is not allowed to operate.
Facebook is yet to file an application with the Reserve Bank of India (RBI) for its cryptocurrency, the article states. Moneycontrol could not independently verify the report.
India has maintained a hostile stance against cryptocurrencies for some time now. If the latest report is to be believed, things are going to be even more complicated for Indian nationals who deal in cryptocurrencies.
The draft Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019 proposes 10-years imprisonment for those who “mine, generate, hold, sell, transfer, dispose of, issue or deal in cryptocurrencies directly or indirectly”. As per the proposal, buying and selling crypto coins will be considered a ‘non-bailable’ offense.
In April last year , the RBI gave a three-month notice to the banking sector to stop their involvement in any sort of cryptocurrency transactions. Thousands of crypto-traders India faced a setback. Various companies that trade bitcoins and other altcoins in India have contested the so-called ban in the Supreme Court. The next hearing is scheduled for July.