Facebook may not launch its cryptocurrency Libra in India

Facebook’s cryptocurrency Libra will not be launched in India, according to a The Economic Times report. The social media giant is expected to launch the digital coin in 2020.

Sources told the newspaper that Calibra, Facebook’s digital wallet, will not be available in countries where cryptocurrencies are banned. At present, regulations in India do not allow its banking network to undertake any kind of blockchain transactions. Calibra, which is going to 'work on WhatsApp and be available globally', will also be unavailable in countries where Facebook is not allowed to operate.

Facebook is yet to file any application with the Reserve Bank of India (RBI) for its cryptocurrency, the article states. Moneycontrol could not independently verify the report.

India has maintained a hostile stance against cryptocurrencies for some time now. If the latest report is to be believed, things are going to be even more difficult for Indian nationals who deal in cryptocurrencies.

The draft Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019 proposes a 10-year imprisonment for those who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies directly or indirectly”. According to the proposal, buying and selling crypto coins will be considered a 'non-bailable' offence.

In April last year, the RBI gave a three-month notice to the banking sector to stop their involvement in any sort of cryptocurrency transactions. Thousands of crypto-traders India faced a setback. Various companies that trade bitcoins and other altcoins in India have contested the so-called ban in the Supreme Court. The next hearing is scheduled for July.