The Reserve Bank of India’s (RBI) Governor Shaktikanta Das has revealed that the central bank still has “serious and major” reservations about cryptocurrencies like Bitcoin and has conveyed those concerns to the government. The Governor stated that it is up to the government to take a call on what needs to be done in the matter while adding that he would like to have “credible explanations and answers” on the value these instruments can bring to the Indian economy.
Cryptocurrencies have been under regulatory scrutiny in India.
Cryptocurrencies like Bitcoin and Ethereum, which are essentially private and not regulated and known for their volatility, have been under regulatory scrutiny in India. This comes despite their proliferation as an asset class. Currently, several countries are looking to regulate the crypto sector in their region. According to a report, the Securities and Exchange Board of India (SEBI) is overseeing the regulations being drafted for the cryptocurrency sector, with Bitcoin being classified as an asset class.
India is reportedly planning to test its CBDC by December.
As reported earlier, the RBI Governor Shaktikanta Das revealed that India plans to start testing the “digital rupee” in December. The testing would mainly focus on the security of digital currencies and the impact that they might have on monetary policy. RBI’s interest in launching a digital version of their fiat currencies is in line with other central banks around the world exploring and looking to launch their own digital currencies. With testing scheduled to begin in December, the central bank will also study the impact of a CBDC on the monetary policy, currency in circulation, and other issues.