Reserve Bank of India (RBI) Governor Shaktikanta Das has again raised concerns about the impact of cryptocurrencies on India’s financial stability.
Crypto presents “Serious Concerns” to RBI
The Indian government is currently waiting for the cabinet to take up the crypto law. However, the country’s central bank, the Reserve Bank of India (RBI), still has major concerns about cryptocurrencies. Governor Shaktikanta Das reportedly said on Wednesday:
We have serious, major concerns about cryptocurrency in terms of financial stability, [and] have submitted the same to the Indian government.
This is not the first time that the RBI boss has raised concerns about cryptocurrencies. In June he said similarly, “We have major concerns about the cryptocurrency that we have communicated to the government. In relation to advising investors, central banks do not provide investment advice. It is up to every investor to make their own assessment, carry out their own due diligence and examine their own investments very carefully. “
India’s Finance Minister Nirmala Sitharaman said in July: “The cabinet note is ready. We have to see when the cabinet can pick it up and think about it so that we can then postpone it. “
However, the Economic Times reported last week that the Indian government is still working on regulating cryptocurrencies and plans to treat them as commodities and regulate on a per use case basis.
This week, Chairman of India’s Parliamentary Standing Committee on Finance, Jayant Sinha, said India’s crypto legislation will be “distinctive and unique” due to the country’s unique circumstances. It won’t follow countries like the US, Japan or El Salvador that recently introduced Bitcoin as legal tender.
Meanwhile, the RBI announced that it would present a digital rupee model by the end of the year and gradually bring it to market.
What do you think of the RBI governor’s concerns? Let us know in the comment section below.
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