Stating that a partial ban will not work, India’s central bank, the Reserve Bank of India (RBI), has reportedly informed the central board of directors that a complete ban on cryptocurrencies is needed.
The Reserve Bank of India convened on Friday at the 592nd meeting of the central board of directors under the chairmanship of Governor Shaktikanta Das.
The directors discussed the current domestic and global economic situation, evolving challenges, and remedial measures. The board also reviewed various aspects relating to cryptocurrency and central bank digital currency (CBDC).
Citing unnamed sources familiar with the deliberations, The Indian Economic Times reported that the board of directors is in favor of an outright ban on cryptocurrencies.
Senior officials of the central bank highlighted several problems related to cryptocurrencies, such as trackability of transactions, valuation, extreme price volatility, legal issues, and identifying participants in transactions.
Governor Shaktikanta Das repeated his position that cryptocurrencies are serious threats to any financial system In October Das had said:
“There is a need for much deeper discussions (on crypto). When the central bank says it has much deeper concerns from the point of macroeconomic and financial stability, there are far deeper issues involved which form part of this.”
India’s Cryptocurrency and Regulation of Official Digital Currency Bill 2021 is set to be considered in the winter session of Lok Sabha, the lower house of India’s parliament. There is a lot of uncertainty regarding the asset class in the country. It was previously reported that the bill actually seemed to have moved away from an outright ban of crypto in the country. It is expected that by February 2022 there will be more clarity on the government’s stance with a new crypto-bill under review.
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Source: Igaming
