New Delhi, Nov 11: Reserve Bank of India (RBI) Governor Shaktikanta Das reiterated his strong views against cryptocurrencies on Wednesday saying they pose serious threats to the macroeconomic and financial stability of the country cautioning investors on the potential pitfalls of the digital currency.
He also has doubts the number of investors trading on them as well their claimed market value. Cryptocurrency in India: Top 5 Crypto Exchange Apps in India for Online Trading
Reiterating his earlier threats,he said cryptocurrencies are serious threat to any financial system since they are unregulated by central banks. RBI’s internal panel report on the contentious topic which is expected next month.
The Reserve Bank Of India(RBI) had in 2018 banned banks and other financial institutions from facilitating transactions in digital currency. The Supreme Court reversed the order in 2020 allowing trading of virtual coins like bitcoin. Since then, though the government has considered the implementation of crypto legislation, but RBI remains extremely critical and continues to support its ban.
The RBI had announced its plans to come out with an official digital currency, in the face of the craze that Indian investors have about cryptocurrencies like Bitcoin about which the central bank has had many concerns. The government last week moved to ban private cryptocurrencies.
Das announcing the February 5, 2021 monetary policy told reporters”With regard to digital currency, I think we have already released our document. Our digital payment document spells out that digital currency is work in progress in RBI.”
The union government has not yet come-up with a law on cryptocurrencies and is in consultation with industry experts, comments from various officials and ministers. Cryptocurrency in India: Govt Likely to Table Crypto Bill in Parliament to Regulate Digital Currency
After several rounds of caution, the government might largely want to set severe limits on the trading of cryptocurrencies in India in the larger public interest.
(The above story first appeared on Morning Tidings on Nov 11, 2021 04:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).
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