The Reserve Bank of India is concerned that digital currencies could impact the country’s financial stability. The governor of the Reserve Bank of India revealed recently that the bank had conveyed its concerns with the government. The renewed skepticism comes amid a rising crackdown by major banks on digital currency transactions. Several other countries have also expressed concern over cryptocurrencies.
RBI has “major concerns” regarding digital currencies.
RBI’s governor Shaktikanta Das told CNBC TV-18 that the central bank has “major concerns” regarding cryptocurrencies. While he didn’t elaborate on the nature of concerns, the financial authority has in the past cited money laundering as a key concern. The central bank had banned commercial banks from processing digital currency-related transactions in 2018. This ban stood for two years before the Supreme Court overturned it in 2020, calling it unconstitutional. Earlier, Governor Das noted the RBI had conveyed its concerns with the government. He believes that these concerns will shape digital currency regulations in the South Asian nation.
Indian government plans to ban all cryptocurrencies.
Indian lawmakers have proposed an anti-crypto bill that looks to ban all cryptocurrencies. Earlier, an official from the finance ministry had revealed that the bill would go as planned, and there will be a crypto ban in the country. The anti-crypto bill has proposed a framework for a digital rupee. The financial watchdog is giving the CBDC its full attention, working on the underlying technology and procedural aspects. He, however, didn’t disclose when he expects the bank to launch the digital rupee. The crypto-related firms in India have pooled their resources to fight back the anti-crypto bill proposed by the government. Several other countries have also taken an anti-crypto stance and are looking to regulate the industry more strictly.