By Staff Writer
The question is whether Facebook’s proposed cryptocurrency, Facebook Coin, which the firm is reportedly seen as testing in India, will bypass the Indian central bank the Reserve Bank of India’s ban on cryptocurrencies. The answer, according to Indian media reports, is: No.
The social media giant’s payments coin would allow peer-to-peer transaction of its cryptocurrency and it would not pass through any banking channel as the country’s now-embattled Bitcoin exchanges did. In other words, it would not touch sovereign-backed currency, in this case, the Indian Rupee.
According to media reports, Facebook is looking to use India as a testbed for its cryptocurrency to be launched as a part of “Project Libra.” Facebook wants to let the users carry out transactions using cryptocurrency through WhatsApp, which it owns.
But then there was the question of whether it will require regulatory approval from authorities. Or, how such a digital token would work under the RBI’s ban on the use of banking services for cryptocurrency transactions.
According to experts, the Facebook coin would not violate the Indian regulations. But it is unclear as yet if it would require any regulatory approval.