Shaktikanta Das, Governor of the Reserve Bank of India (RBI), stated on September 9 that the central bank had “serious concerns” about the financial stability of cryptocurrencies.
“We have serious, major concerns on cryptocurrency w.r.t financial stability, have conveyed the same to government of India.” the RBI head said at an event on September 8.
This isn’t the first time the governor of the Reserve Bank of India has expressed his concerns about cryptocurrencies.
The central bank has expressed its worries about cryptocurrencies to the government, and it is now up to the government to make a decision, Das said, adding that greater clarification on bitcoin’s role in the economy is needed.
Das reiterated his skepticism of cryptocurrency on June 4th.
“We have major concerns on cryptocurrency, which we have conveyed to the government. With regard to advice to investors, well, central banks don’t give any investment advice. It’s up to each investor to make his own appraisal, to do his own due diligence and take a very careful call with regard to his own investments,” Das stated at the time.
Das’ new remarks are noteworthy since the government is nearing the completion of national regulation on private cryptocurrencies. Finance Minister Nirmala Sitharaman announced on August 16 that the Union Cabinet will soon consider a law to regulate cryptocurrencies and their burgeoning industry in India.
During a press conference with reporters, Sitharaman remarked “Cabinet note is ready on cryptocurrency bill. I am awaiting Cabinet to clear that,”. Whereas the RBI opposes private cryptocurrencies, it supports the creation of a central bank virtual money.
The RBI is now working on this approach and has previously stated that certain choices might be announced as early as the end of this year.
Sitharaman has already stated her position on cryptocurrency, stating that the government does not want to close all choices and that individuals would be given ample opportunities to experiment with blockchain, bitcoins, and other cryptocurrencies.
Sitharaman told the Rajya Sabha in late July that the government does not keep track of the number of cryptocurrency exchanges and investors in India.
She also stated that the Finance Ministry has received no evidence indicating that some of these trades are involved in narcotics trafficking or money laundering.
According to statistics from cryptocurrency exchanges, about 1.5 crore Indians have invested in cryptocurrencies, with a total value of Rs 15,000 crore, and more individuals are beginning to invest. In the blockchain and cryptocurrency area, there are 350 startups.