India’s central bank, the Reserve Bank of India (RBI), has reportedly told the board that it is in favor of a total ban on cryptocurrencies, stating that a partial ban will not work. The central bank reiterates that it has serious concerns about crypto. In the meantime, the Indian government is reportedly making further changes to the crypto bill.
RBI wants a blanket ban on crypto, says a partial ban won’t work
The Reserve Bank of India (RBI) held the 592nd Central Board meeting on Friday, chaired by Governor Shaktikanta Das. The board of directors is the highest decision-making body at Apex-Bank.
The board reviewed the current national and global economic climate, evolving challenges, and remedial actions. Directors also discussed various aspects related to cryptocurrency and central bank digital currency (CBDC).
At the meeting, the RBI reportedly said it was in favor of a full ban on cryptocurrencies and stated that a partial ban will not work, the Economic Times reported, citing unnamed sources familiar with the deliberations.
Senior RBI officials highlighted several areas of crypto-related concerns, including transaction traceability, valuation, extreme price volatility, legal issues, and identification of participants in transactions.
Governor Shaktikanta Das reiterated his anti-crypto stance, stressing that cryptocurrencies pose a serious threat to any financial system as they are not regulated by central banks.
That has repeatedly said that the central bank serious concern regarding cryptocurrencies, stating that they pose a serious threat to the macroeconomic and financial stability of India.
“There is a need for much deeper discussions (about crypto). When the central bank says it has much deeper concerns about macroeconomic and financial stability, there are far deeper problems associated with it, ”the central bank governor said in October.
The Law on Cryptocurrency and Regulation of Official Digital Currency 2021 was presented for review at the winter session of Lok Sabha, the lower house of the Indian Parliament. According to reports, the government plans to regulate Crypto Assets with the Securities and Exchange Board of India (SEBI) as the main regulator, however Prohibit the use of crypto for payments. However, there are reports that the government is still revision the bill and will likely introduce it at the budget meeting instead.
In the meantime, RBI is also working on a digital rupee, which it intends to implement in phases. The central bank said last week that there will be two types of CBDC: wholesale and retail. “A lot of work has been done in the wholesale CBDC space, while retail is a bit complicated and will take longer. We will publish a pilot, whichever is ready first, ”said RBI Deputy Governor T. Rabi Sankar.
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Source: Crypto News Austria