Reserve Bank Of India (RBI) Governor Expresses Concerns on Cryptocurrency

News / 24.02.2021

India’s central bank, the Reserve Bank of India (RBI), is worried about the effect of cryptocurrencies in the region. The bank is also developing the digital rupee as it looks to join the list of countries with Central Bank Digital Currencies (CBDC). 

Crypto Concerns from India’s Apex Bank  

RBI governor Shaktikanta Das echoed this latest concern in an interview with local news outlet CNBC TV-18 on Wednesday. Das revealed that the bank had significant problems with cryptocurrencies and had informed the government. 

He also added that the government considered the concerns, and a decision is likely to be reached sooner or later. The apex bank chief also revealed that the central bank was already working on the digital rupee

Das enthused about the development and added that the RBI worked on both the technical and regulatory areas. “Lot of work is going on there. “the RBI team is working on it, both the technology side as well as the procedural side,” he said. 

The central bank governor did not yet establish a timeline for the launch of the digital rupee, but the bank was on the right track. “we are very much in the game” and are “targeting to launch” it at some point. “Several loose ends need to be tied up, but it’s receiving our full attention,” he concluded. 

India Government Proposing Strict Crypto Laws

The Indian government has made no secret of its attempts to introduce stricter cryptocurrency laws in the country. The government has already proposed a new bill called “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.”. 

The bill seeks to place a blanket ban on cryptocurrency and prosecute those caught trading cryptocurrencies. It will also regulate the digital rupee, which will replace popular cryptocurrencies like Bitcoin and Ethereum

Das’s statements today are not surprising given the actions of the RBI in the past. The apex bank has previously expressed concerns about cryptocurrencies claiming their use for money laundering, tax evasion, and terrorism. 

It also banned banks from processing crypto transactions in 2018, a decision overturned by India’s Supreme Court last year. The coming weeks will provide a clear regulatory framework on cryptocurrency in one of the largest p-2-p markets in the world.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.