Das also said the RBI is “very much in the game” and is getting ready to launch its own digital currency.(ANI file photo)
Das also said the RBI is “very much in the game” and is getting ready to launch its own digital currency.(ANI file photo)

RBI has concerns about cryptocurrencies: Governor Shaktikanta Das

In 2018, the Reserve Bank of India (RBI) had banned banks and other regulated entities from supporting crypto transactions after it found digital currencies were used to commit fraud after demonetization. Last year, the Supreme Court struck down the curbs after cryptocurrency exchan-ges challenged the move.
By Gopika Gopakumar
PUBLISHED ON FEB 25, 2021 07:20 AM IST

The Reserve Bank of India (RBI) has concerns about the impact of cryptocurrencies on financial stability and has conveyed them to the central government, governor Shaktikanta Das said.

“We have certain major concerns about cryptocurrency. We have communicated them to the government. It is under consideration in the government and I do expect and I think sooner or later, the government will take a call and if required, the Parliament also will consider and decide,” Das said in an interview to CNBC-TV18. “I want to make it clear that blockchain technology is different. Blockchain technology benefits have to be exploited, that is another thing. But on crypto, we have major concerns from the financial stability angle and we have shared it with the government. The government will consider and take a call,” he added.

In 2018, RBI had banned banks and other regulated entities from supporting crypto transactions after it found digital currencies were used to commit fraud after demonetization. Last year, the Supreme Court struck down the curbs after cryptocurrency exchan-ges challenged the move.

The Centre is now planning to introduce a bill in Parliament barring companies and individuals from dealing in cryptocurrencies while it creates a framework on an official digital currency. Das also said the RBI is “very much in the game” and is getting ready to launch its own digital currency. “Central bank digital currency is a work in progress. The RBI team is working on it, technology side and procedural side, how it will be launched and rolled out,” he added.

Das tried to assuage market concerns on surplus liquidity and government borrowing, saying the central bank will ensure an orderly evolution of the yield curve. He assured the RBI will not pull out liquidity prematurely and stifle growth.

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