India Needs Well-Informed Debate on Cryptocurrency, Says RBI Chief

The Indian government needs well-informed discussions about cryptocurrencies, according to RBI Governor Shaktikanta Das, who added that the country needs a cryptocurrency policy.


"Cryptocurrencies are a big concern for the RBI from the perspective of macroeconomic and financial stability," Das stated during an event last week. The government is presently looking at it and will make a decision. However, as the country's central bankers, we have significant concerns and have raised them many times.


We need considerably more in-depth discussions on cryptocurrency news in India, as indicated by the Reserve Bank Governor Shaktikanta Das last Tuesday when the government developed a law to regulate private virtual currencies. "When the central bank states that we have substantial concerns from a macroeconomic and financial stability standpoint, there are considerably more complex problems at stake," he added during the State Bank of India's Economics Conclave. "I've yet to see serious, well-informed discussions about these topics in the public arena."


Over time, India's approach to cryptocurrencies has changed from outright prohibited to legalizing by the courts. As an uncontrolled environment may drive more domestic savings into the asset class, there have been proposals for more significant restrictions on cryptocurrency transactions. The finance ministry is developing a bill to regulate such assets. Following a recent meeting of Prime Minister Narendra Modi's cabinet, officials said the government was considering progressive measures in the area. Still, illicit crypto markets should not be permitted to develop as money-laundering and terror-financing pathways.


RBI’s stance on Cryptocurrency


The Reserve Bank of India's chief, Shaktikanta Das, has started three days after a Prime Minister-chaired meeting reached an agreement that future government actions in the area of cryptocurrency will be "progressive and forward-thinking." The RBI chief asserts once again that caution was required.


"I would only like to point out that when the RBI, as India's central bank charged with the duty of maintaining financial stability, after appropriate internal debate concludes that macro-economic and financial stability is in danger, there are deeper concerns," stated Das at Tuesday's SBI Banking Conference. India needs a well-informed public debate on these topics. This would not be the first time the RBI has issued a cautionary statement.


Cryptocurrency, RBI Governor on Trading Volumes


According to cryptocurrency news, "We've gotten a lot of feedback anecdotally and otherwise that credit is being given to open accounts, and various kinds of incentives are being offered."


On Tuesday, RBI Governor Shaktikanta Das asserted that 80% of cryptocurrencies are low-value, small accounts of Rs 1,000 and Rs 2,000, with even smaller amounts present. "Yes, the value of trades and transactions has increased, but the number of accounts is overstated, as I've previously said. And I'm sticking to my guns on this one." This has helped spread cryptocurrency news in India.


Comments

Leave a Comment