RBI made a detailed presentation to the board and raised serious concerns about financial stability and the traceability of transactions.
New Delhi: The Reserve Bank of India (RBI) has reportedly told its Central Bank Council that it is in favor of a total ban on cryptocurrencies and partial restrictions will not work. In a presentation to its Central Bank Council, the central bank highlighted issues related to financial stability and macroeconomics combined with cryptocurrency valuation and exchange management.
The board has been briefed on the RBI’s position on the matter, people with knowledge of the matter told ET.Plus. The central bank has raised concerns about the regulation of intangible assets from abroad.
Someone familiar with the discussions at the RBI board meeting on Friday said cryptocurrencies are available for trading on foreign exchanges, indicating concerns about the anonymity of transactions.
It is worth mentioning here that the RBI continues to reject the recognition of virtual currencies. While the central bank was forced to lift its digital currency ban in 2018 as a result of a Supreme Court ruling, it has not changed its stance.
From the perspective of macroeconomic and financial stability, cryptocurrencies are a serious problem for the RBI,” said RBI Governor Shaktikanta Das earlier. As central bankers, we have serious concerns about this and have raised it many times.
Citing the second person, the financial newspaper reported that some board members were looking for a balanced approach to these crypto assets, mentioning expansions in the technology area and greater impact on the financial sector.
On Friday, RBI said it was discussing various aspects related to central bank digital currency and private cryptocurrencies.
The government had presented the 2021 bill on cryptocurrencies and the regulation of the official digital currency for presentation in the Lok Sabha in the winter session of parliament. It had previously been included in the budget meeting, but could not be presented as decided by the Center to rework it.
Separately, it was previously reported in the publication that Prime Minister Narendra Modi will make a final decision on the regulatory framework for cryptocurrencies in the face of conflicting views.
The Finance Department finalized the cryptocurrency bill, but certain parts of the government felt that more detailed thought might be needed.
The Prime Minister has held several rounds of talks on this subject.
