Niraj Kumar Seth, Maharashtra National Law University, Mumbai
ABSTRACT
The paper addresses the core issue of desirability and legal feasibility of adoption by central banks of a digital currency as fiat currency to counter the increasing popularity of private cryptocurrencies (‘Cryptos’). To give a background, regulatory concerns emerging from the use of cryptos have been probed and India’s overall regulatory approach towards cryptos have been traced till date. It assesses the potential of such a move as an alternative regulatory approach towards cryptos. The pros and cons of introducing CBDFCs vis-a-vis physical currencies have been analyzed in the context of Indian conditions. Extant legal provisions on issue of fiat currencies by central banks have been examined to assess the legality of adoption of a digital currency as a fiat currency for India. Suggestions have been offered to address some India specific concerns emanating from such a proposal.
Keywords: Currency, Digital, Cryptocurrency, CBDFC
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