The Central Bank of India has announced board support for a total ban of cryptocurrencies in India. According to sources in the Economic Times, RBI gave a detailed presentation at its latest board meeting highlighting significant negative concerns about cryptocurrency trading and its impact on the country’s financial stability. RBI has also highlighted problems in managing crypto exchanges.
The Reserve Bank of India is sticking to its tough stance on crypto. According to the institute, the nature of cryptocurrencies and the fact that they allow anonymity of transactions in forex is a critical threat to the Indian economy.
Earlier, RBI Governor Shaktikanta Das said the central bank had flagged cryptocurrencies many times and wanted the government to strictly consider a complete ban on the country.
Reserve Bank of India does not have an optimistic view on crypto
The Reserve Bank of India doesn’t seem to want to show a balanced view on the introduction of cryptocurrencies in India. The Institute relentlessly emphasizes the negative aspects of cryptocurrencies, but completely rejects the optimistic view of decentralized currencies.
Last month, the Indian government submitted a bill to regulate cryptocurrencies that will be presented to the winter session of Parliament to call for a complete ban on cryptocurrencies. Although the hearing was scheduled at a budget meeting, the government considered and did not propose the bill.
There are reports that the government will try to regulate crypto in India instead of imposing an outright ban. For now, it appears that the Government of India will seek wider consultation before making any significant decisions.
If the proposed law is passed, the government will consider creating an official digital currency that will be issued by the RBI. So it’s pretty clear why the RBI supports the idea of a total ban on cryptocurrencies. Sources also indicated that the board has discussed several aspects of the potential digital currency and RBI’s private cryptocurrency.
The Indian crypto community is very concerned about this whole dilemma. It remains unclear whether all this discussion is another FUD or whether the Indian government can actually impose a complete ban on cryptocurrencies like China.