The Reserve Bank of India is concerned that cryptocurrencies may impact the financial stability of Asia’s third-largest economy, a view that could shape upcoming anti-crypto regulations on the asset that is breaking price-records around the world. The RBI has conveyed these “major concerns” to the government, Governor Shaktikanta Das said in an interview with CNBC TV-18 Wednesday. The Indian government is planning to propose a bill to ban all cryptocurrencies and roll out a framework for the digital rupee.
The RBI governor shows concern over crypto use.
Earlier, the RBI expressed concerns on cryptocurrencies related to issues ranging from money laundering to funding terrorists. The central bank had banned banks and other regulated entities from supporting crypto transactions in 2018 after digital currencies were used for fraud following Modi’s landmark demonetization program that replaced India’s cash with new bills. However, the Supreme Court overturned the ban last year in response to a petition by cryptocurrency exchanges. Now, the Indian government is planning to introduce a bill to ban all cryptocurrencies.
Indian central bank is exploring the idea of CBDC.
The RBI is “very much in the game” in getting ready to launch its own digital currency, Shaktikanta Das said, joining other central banks, including China’s digital yuan. While there was no specific date for a rollout, the project is “receiving our full attention” and the central bank is working on the technology and procedural aspects and is tying up several loose ends, RBI governor further informed. According to The Economic Times report, banks like HDFC, HSBC, and Citi seek clarification from their customers on crypto transactions. However, the Indian crypto community has pooled its resources to fight back upcoming anti-crypto regulations.