July 19, 2019 | 6:43 AM IST
Facebook’s cryptocurrency

FB may not launch its cryptocurrency Libra in India

Libra, Facebook’s cryptocurrency scheduled for a 2020 launch will not happen in India as the current regulations do not permit use of banking network for blockchain currency transactions.

According to reports trickling in, the social wallet will not be available in markets where cryptocurrencies are banned or has restricted FB operations. On the other hand, FB has not filed any application with the Reserve Bank of India (RBI) for the same either.

However, Libra would be available on Facebook’s messaging tool - WhatsApp – and be available globally. It may be noted that in April 2018, RBI had given regulated entities a three-month notice to stop dealing in virtual currencies due to related risk factors.

Reports claim that the social media giant has tied-up with 28 organisations including Visa, Mastercard, PayU and even Uber that will accept the virtual currency available on WhatsApp and FB messenger. 

Founder of Ikigai Law a technology-based law firm, Anirudh Rastogi is of the opinion that if Facebook’s Libra is a closed system and will be transacted on its network and not beyond, there is no need for the RBI to be really concerned. That is because the coin does not engage with the external economy. Libra also plans to allow real-time conversion to local currency used to remove any fluctuations in foreign exchange.

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