RBI Governor Shaktikanta Das Conveyed Concerns on Cryptocurrencies to Government

Sahaj  |  Mar 25, 2021

RBI Governor Shaktikanta Das said on Thursday that the Reserve Bank of India has major concerns about the cryptocurrencies being traded in the market. In addition to this, Das has conveyed the same concern to the government highlighting the fact that both the RBI and the government are devoted to attaining financial stability.

Shaktikanta Das Says RBI Has Major Concerns on Cryptocurrencies

In the statement released on Thursday, the Governor of the Reserve Bank of India said that there are no differences between the Finance Ministry and the Central Bank regarding the concerned matter. 

Additionally, he said:

"We should now await the final decision on the matter from the Centre."

These comments from the RBI Governor have come due to the mixed signals coming from the government regarding the regulation of cryptocurrencies. 

There were having intentions of imposing a complete ban on the use of cryptocurrencies in India due to its highly fluctuating nature and lack of an underlying base guiding its values. However, they are now mixed with signals that the government is showing towards Bitcoin.

Shaktikanta Das revealed in an interview that he has several reasons to believe that the government is in concurrence with the major issues indicated by the RBI.

In addition to this, Das released a statement that said:

“Central bank digital currency is one thing. The cryptocurrencies which are traded in the market are something else. Both RBI and government are committed to financial stability.”

He added:

“We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government.”

Reserve Bank Working on CBDC

Addressing the continuation of RBI’s work on the digital version of the fiat currency, Das said:

"As the underlying technology is still developing, we are exploring ways for a clear, safe, and legally certain settlement finality, which is most crucial for a secure and efficient payment system."

However, Das in addition to this also mentioned, the lack of practical illustration of the functioning of a CBDC internationally.

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