India’s central bank governor Shaktikanta Das has announced that the bank has “major concerns” about cryptocurrencies and has informed the government about it. He expects the government to make a decision on cryptocurrency soon. Meanwhile, the Reserve Bank of India (RBI) is paying full attention to the digital rupee.
The RBI has major concerns about cryptocurrencies
The governor of India’s central bank expressed concern about the potential impact of cryptocurrencies on the country’s financial stability and economy on Wednesday. In an interview with CNBC-TV18, RBI Governor Shaktikanta Das shared the following:
We have some major concerns about cryptocurrencies. We communicated it to the government. It is being examined in the government.
He explained, “When it comes to crypto, we have major financial stability concerns and have shared them with the government.”
The governor further clarified: “I expect and I think that sooner or later the government will take a call and that parliament will also think about it and decide if necessary.”
While Das did not further explain what the main concerns are, the central bank has previously raised concerns that cryptocurrencies are being used for money laundering and terrorist financing.
The Indian government plans to introduce a cryptocurrency bill during the ongoing session of parliament. The bill is intended to create a legal framework for the issuance of the digital rupee by the RBI, but prohibits all private cryptocurrencies.
Regarding the digital rupee, Das confirmed that the RBI is “very much in the game” and is preparing to launch its own digital currency. He stated that the “central bank digital currency [CBDC] is in progress ”and notes that the“ RBI team is working on both the technology and the process side of how it will be started and implemented. Regarding the launch date of the central bank’s digital currency, Das said:
It will be very difficult and impossible for me to give a date as there are several loose ends that need to be tied and that will get our full attention.
A number of other central banks around the world are also trying to issue their own digital currencies. China has been actively testing its digital yuan in major cities in recent months. The US Federal Reserve said this week that the digital dollar is a very high priority project for the Fed. The President of the European Central Bank (ECB), Christine Lagarde, has said that the digital euro could be ready within four years.
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Bitcoin ban, crypto ban, CBDC, digital rupee introduction, india crypto, indian crypto bill, indian crypto regulation, indian cryptocurrency, indian government, rbi bitcoin, rbi crypto
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