The central bank digital currency is expected to be raised at China’s biggest meetings of legislators later this week.
A CBDC could promote financial inclusion but also poses a risk of harming the banking system, the RBI said in a report.
The cryptocurrency rose to $1.30, beating out its previous all-time high set in January 2018.
If approved and agreed upon, the new funding could more than double the company’s $4 billion valuation to around $10 billion.
Both bitcoin and stock markets had been showing signs of weakness since the beginning of the week.
The bitcoin market looks to be in a more healthy state after massive long liquidations blew the froth off the futures market.
Kraken said ether’s price saw a “sharp” downward movement on Monday.
The two commercial banks join the six state-owned banks already participating in the CBDC trial.
Less than two months into 2021, the price of bitcoin has risen 95.4%.
Binance’s BNB token is up 13% and into the top five cryptocurrencies by market cap as DeFi on Binance Smart Chain grows in popularity.