A bill for regulating cryptocurrency is in the works, and RBI Governor Shaktikanta Das is among those who feel that the blockchain technology underpinning cryptocurrencies could exist on its own, even without the currency.
According to ET, RBI has advised its central board that it favours a complete ban on cryptocurrencies.
RBI On Cryptocurrency
Previously RBI has often expressed worries about cryptocurrencies creating macroeconomic and financial stability risks.
“When the central bank says that we have serious concerns from the point of view of macroeconomic and financial stability, there are far deeper issues involved,”
Reserve Bank of India governor Shaktikanta Das said at a recent event.
The RBI made a detailed presentation to the board highlighting “serious concerns” relating to macroeconomic and financial stability as well as exchange management, said one person. “The board was apprised of RBI’s stance on the matter.” The central bank also highlighted the challenge of regulating intangible assets that originate overseas.
RBI said these are available for trading on foreign exchanges, pointing to concerns over the anonymity of transactions, another person said.
“Cryptocurrencies are a serious concern to RBI from a macroeconomic and financial stability standpoint,” RBI governor Shaktikanta Das has said previously. “As the central banker, we have serious concerns about it and we have flagged it many times.”
“The board also discussed various aspects relating to the Central Bank Digital Currency and private cryptocurrencies,” the RBI said in a statement on Friday.
A Bill For Regulating Cryptocurrency Is In The Works!
The bill, which was listed in the government’s legislative business of the winter session, seeks to “create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India”.
It also seeks to prohibit all private cryptocurrencies in India. However, it “allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”, according to the bill listed for an introduction on the Lok Sabha website.
Top sources stated on Wednesday that the government is planning to introduce a bill on cryptocurrency during the current winter session of Parliament.
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