Sunday, February 5, 2023

RBI Has Serious Concerns Over Cryptocurrency, Says Governor

The central bank of India has “serious” and “major” regarding the financial stability of private cryptocurrencies, like Bitcoin, said the Reserve Bank of India (RBI) Governor Shaktikanta Das, on September 09.

The RBI would be needing credible answers on how digital assets could contribute to the Indian economy.   

While sharing his views in an event, the RBI chief said, “We have serious, major concerns on cryptocurrency w.r.t financial stability, have conveyed the same to government of India.”

This is not the first time the RBI expressed has its concern over cryptocurrency. Several times, the central bank has shared its concern with the government.

Das stated that the Indian Government is already aware of the things that RBI is worried about regarding cryptocurrencies, now it is up to the government to take a decision on the matter.

The RBI Governor further mentioned that the central bank wants to get a clear vision of cryptocurrencies’ contribution to the Indian economy.

A few months ago, Das shared his critical stance over cryptocurrency and stated, “We have major concerns on cryptocurrency, which we have conveyed to the government. With regard to advice to investors, well, central banks don’t give any investment advice. It’s up to each investor to make his own appraisal, to do his own due diligence and take a very careful call with regard to his own investments.”

Das’ recent comments over cryptocurrencies are considered to be significant, as currently, the Indian government is at the advanced stage of finalizing the regulatory framework for private cryptocurrency.  

On August 16, the Finance Minister of India, Nirmala Sitharaman, stated that as soon as the cabinet would approve the bill the government would introduce it to regulate the Indian crypto industry.

“Cabinet note is ready on cryptocurrency bill. I am awaiting Cabinet to clear that,” Sitharaman said during an interaction with reporters.

It is to be noted that on one hand, the RBI has a very critical stance over private cryptocurrencies, on the other hand, it is planning to introduce the central bank digital currency. 

As per the report, currently, the RBI has been working on this project and by the end of the year 2021, it might initiate the pilot program, too. 

Earlier, during a press conference, Sitharaman made it clear that the Indian Government is not planning to ban all options in the crypto industry. She further mentioned that the authorities would offer adequate windows to the people so that they could experiment with blockchain and cryptocurrencies.

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