India, which is the third greatest economy in Asia, doesn’t seem to admit the idea of Libra coin.
Subhash Garg the secretary of Economic Affairs said in New Delhi interview on 6 July that the design of Facebook’s coin is not totally explained, but anyway it is going to be a private currency, which is not something that India is going along with.
And the authorities of the country and the central bank have already virtually outlawed cryptocurrencies after the moment when banks couldn’t regulate them. At the time Reserve Bank of India made some restrictions and the government is creating a draft for laws with stringent penalties on cryptocurrency use.
Plans about Libra were announced by Mark Zuckerberg last month, it will launch in 2020 or later and it’s certainly going to be a stablecoin. Facebook doesn’t immediately respond to the comments from various governments according to the new launching coin.
The answer of the Indian government comes weeks after strategists with Jefferies Financial Group Inc. said Facebook’s Libra is going to count on proceeded explosive extension from rising markets and especially India to succeed. The number of Facebook users in India increased and now experts expect that it will reach the number 440 million by 2023.
The central bank of India is defending its turf for managing electronic money and also attempting to cut off an avenue for violations using digital coins, while many nations such as Abu Dhabi and South Korea are forming rules to support more secure crypto trading.