India’s central bank governor Shaktikanta Das has revealed that the bank has “major concerns” about cryptocurrencies, and it has informed the government of them. He expects that the government will soon make a decision on cryptocurrency. Meanwhile, the Reserve Bank of India (RBI) is giving its full attention to the digital rupee.
RBI Has Major Concerns About Cryptocurrencies
The governor of India’s central bank expressed concerns over the possible impact made by cryptocurrencies on the country’s financial stability and the economy Wednesday. In an interview with CNBC-TV18, RBI Governor Shaktikanta Das shared:
We have certain major concerns about cryptocurrencies. We have communicated them to the government. It is under consideration in the government.
He elaborated: “On crypto, we have major concerns from the financial stability angle and we have shared it with the government.”
The governor further clarified: “I do expect and I think sooner or later the government will take a call and if required Parliament also will consider and decide.”
While Das did not explain further what the major concerns are, the central bank has previously expressed concerns that cryptocurrencies are being used for money laundering and terror financing.
The Indian government is planning to introduce a cryptocurrency bill during the current session of parliament. The bill seeks to provide a regulatory framework for the digital rupee to be issued by the RBI but bans all private cryptocurrencies.
Regarding the digital rupee, Das confirmed that the RBI is “very much in the game” and is getting ready to launch its own digital currency. He detailed that the “Central bank digital currency [CBDC] is work in progress,” noting that the “RBI team is working on it, technology side and procedural side, how it will be launched and rolled out.” Regarding the launch date of the central bank digital currency, Das said:
It will be very difficult and not possible for me to give a date as there are several loose ends that need to be tied up and it is receiving our full attention.
A number of other central banks around the world are also looking at issuing their own digital currencies. China has been actively testing its digital yuan in major cities over the past months. The U.S. Federal Reserve said this week that the digital dollar is a very high-priority project for the Fed. As for the digital euro, the president of the European Central Bank (ECB), Christine Lagarde, has said that it may be ready within four years.
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