On September 9, Thursday, the Governor of the Reserve Bank of India (RBI) Shaktikanta Das said that the RBI (the central bank of India) has “serious and major concerns” about cryptocurrency; they have conveyed the same to the government.
RBI Governor Shaktikanta Das Voices the Concerns of the Central Governing Body
On September 8, the RBI Governor Shaktikanta Das attended an event where he specifically stated that “We have serious, major concerns on cryptocurrency w.r.t financial stability, and have conveyed the same to the government of India.”
This is not the first time that the Indian central authority is conveying its concerns to the government regarding the use and effect of cryptocurrency in the Indian economy.
Cryptocurrencies like Bitcoin and other digital assets are unregulated entities, mined with the help of extensive hash power and complex brain-wrecking problems. They also have profoundly volatile market prices. The central Government of India is still mulling over a framework to regulate cryptocurrencies, despite classifying them as “assets”.
Shaktikanta Das also said, “We have major concerns on cryptocurrency, which we have conveyed to the government. Concerning advice to investors, well, central banks don’t give any investment advice. It’s up to each investor to make his appraisal, to do his due diligence and take a very careful call about his investments.”
The RBI Governor’s comments are extremely significant, as the finance minister of the Union Cabinet of India – Shri Nirmala Sitharaman has been indicating that the draft for the cryptocurrency regulations is almost ready. They are at the final stage of getting it approved by the authorities.
By the end of this year, India might come up with a regulatory system to control the “operations of fiat digital currencies (DC)”. India is focusing more on the regulation and launching of the Central Bank Digital Currencies (CBDC), as it will yield the fruits of a growing economy. The massive amount of funds invested by Indian Crypto enthusiasts won’t wash away into “private cryptocurrencies” such as Bitcoin, Ethereum, Doge &c.
India might as well launch a CBDC pilot project soon, inspire by many South Asian countries. However, it is uncertain; what stance will the Government take on private cryptocurrencies.