Libra faces skeptical government in India

Bloomberg

The latest skepticism to Facebook Inc’s plans for its new cryptocurrency called Libra comes from India as Asia’s third-largest economy is not keen on allowing the digital currency in the country.
“Design of the Facebook currency has not been fully explained,” Economic Affairs Secretary Subhash Garg said in an interview in New Delhi. “But whatever it is, it would be a private cryptocurrency and that’s not something we have been comfortable with.”
Both the government
and the central bank have virtually outlawed cryptocurrencies after it barred banks from dealing in them. While the Reserve Bank of India has placed restrictions, the government is drafting a law with stringent penalties on their use.
Last month, Facebook unveiled plans for Libra. When it launches in 2020 or later, it will be a stablecoin — a digital currency that doesn’t fluctuate much because it’s supported by established government-backed currencies and securities. The company hasn’t yet formally sought permission from India to launch its digital currency in the country. Facebook didn’t respond to an email seeking comments on government’s frosty reaction.
The response of the Indian government comes after strategists with Jefferies Financial Group said Facebook’s Libra will be counting on continued explosive growth from emerging markets and especially India to succeed.