Facebook’s Yet To Be Launched Cyrptocurrency Libra Fails To Convince Skeptical Indian Officials; Law To Jail Violators Likely

Top Indian officials have stated that India is not keen on allowing transactions in Facebook Inc’s new cryptocurrency called Libra.

According to an economic affairs secretary, the design of the Facebook cryptocurrency has not been fully explained and that it is merely a private cryptocurrency.

Incidentally, both the government and the Reserve Bank of India have outlawed cryptocurrencies after it barred banks from dealing in them. The government is already in the process of drafting a law with stringent penalties against their use.

Libra is expected to launch in 2020 or later and is being marketed as a stable digital currency which would not fluctuate much because it is supported by established government-backed currencies and securities.

However, Facebook, which also owns WhatsApp hasn’t yet formally sought permission from India to launch Libra in the country.

Earlier, the Supreme Court of India had endorsed the Reserve Bank’s April 2018 ban on cryptocurrencies after cryptocurrency exchange operators in India had challenged the move in court.

The matter will come up for hearing on July 23.

Meanwhile, it has been reported that the Indian government’s draft law called Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019, is likely to propose a jail term of one to 10 years for those who mine, hold or sell cryptocurrencies in India.