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RBI To Consider Issuing Fiat Digital Currency

Professor of Financial Economics and Part-time Value Investor, Transfin.
Apr 7, 2018 12:24 PM 2 min read

End of Day Wrap-up (Saturday / April 07, 2018) #RBI #Cryptocurrency #Blockchain #Bitcoin #Ethereum #Ripple #SEBI #debt #Essar #NCLT #MakeMyTrip #sensex #tradewars #US #China #Transfin

Editor's Comment: SEBI proposes strengthening rules against insider trading, in light of recent leaks of Axis Bank, HDFC Bank, Tata Motors' results. Plans to use statistical tools to establish links between those passing sensitive information and parties trading on them, enhancing surveillance, monitoring large client activity by brokers and exchanges etc.


RBI plans to consider issuing its own fiat digital currency. Reduction of costs with respect to printing and circulation cited as possible drivers. The plan appears counter-intuitive in the backdrop where RBI has been fairly harsh on pure play virtual currencies such as Bitcoins. But Deputy Governor BP Kanungo argues that while safeguards against cryptocurrencies are essential, the underlying blockchain technology can be an extremely effective and powerful force driving financial infrastructure. Interdepartmental group to submit report on proposal in June.  


RBI raises debt investment limits for Foreign Portfolio Investors across all segments, including government bonds, to reduce pressure on bond yields and domestic banks. 


Arguments conclude in Essar Steel bankruptcy case around its potential acquisition. Order to be announced by NCLT on April 12. ArcelorMittal and Numetal conduct last lap of arguments to contest their disqualification from the bidding process.


MakeMyTrip to delist hotels from other budget hotel aggregators Treebo and FabHotels as part of an exclusivity agreement with OYO.  


Dow closes down 572 points (-2.3%) on Friday on fears of an escalating trade war between US and China. President Trump said on Thursday he was considering tariffs on $100bn more Chinese exports, three times the original plan.