The Reserve Bank of India (RBI) is concerned over the impact cryptocurrencies may have on the financial stability in the economy and has conveyed the same to the government, Governor Shaktikanta Das said on Wednesday.
“We have certain major concerns about cryptocurrencies. We have communicated them to the government. It is under consideration in the government and I do expect and I think sooner or later the government will take a call and if required Parliament also will consider.
“I want to make it clear that blockchain technology is different. Blockchain technology benefits have to be exploited, that is another thing. But on crypto, we have major concerns from the financial stability angle and we have shared it with the government. The government will consider and take a call,” Das said.
While Das did not elaborate further, the central bank had in the past expressed concerns about digital currencies being used for money laundering and terror funding The government is planning to introduce a bill in Parliament to bar companies and individuals from dealing in cryptocurrencies while creating a framework for an official digital currency.
The RBI had in 2018 banned banks and other regulated entities from supporting crypto transactions after digital currencies were used for frauds. The Supreme Court cut the curbs last year in response to a petition by cryptocurrency exchanges. Das said the RBI is “very much in the game” and is getting ready to launch its own digital currency.
“Central bank digital currency is work in progress. RBI team is working on it, technology side and procedural side, how it will be launched and rolled out,” Das added. If this happens, the RBI will join other central banks including that of China, where it has electronic yuan.