- Libra’s digital wallet, Calibra, may be banned from Indian markets.
- Facebook was planning to leverage WhatsApp’s 400 million users to promote Libra.
The Economic Times reported that due to the existing regulatory constraints of India, Facebook’s Libra could face a hard time. A source told Economic Times, “Facebook has not filed any application with RBI (Reserve Bank of India) for its cryptocurrency in India.” Calibra, Libra’s digital wallet, may also be banned from markets as per another anonymous source.
Facebook had earlier told the Economic Times, “We expect Calibra to work on WhatsApp and be available globally.” Statista’s survey shows that India has around 400 million WhatsApp users.
Cryptocurrency transactions are allowed within peer-to-peer in India. However, in April 2018, RBI passed a deadline to avert certain corporates entities from dealing in digital currency to avoid social and financial risks. This issue has been challenged in the Supreme Court of India with the next hearing on July 23.
According to Tanvi Ratna, a policy analyst and fellow at New America, the distinction between personal and business use may be moot whatever decision the court takes. Anirudh Rastogi, the founder of Ikigai Law, said:
“If Facebook were to design the Libra to be a closed system, only to be transacted on its network and not beyond, RBI should ideally be less concerned, since the coin does not engage with the external economy. If it is not meant to operate in a closed system, then it is exactly the kind of digital asset that concerns RBI.”
A draft bill, dubbed “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019,” reportedly received support from The Department of Economic Affairs, Central Board of Direct Taxes, Central Board of Indirect Taxes and Customs and the Investor Education and Protection Fund Authority in April.
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