The Reserve Bank of India (RBI) has informed its central board that it favours a complete ban on cryptocurrencies, reported by Economic Times. The Central government had already planned to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, in Parliament. The Bill awaits PM Modi's final decision over it, as certain sections of the government feel to hold more detailed deliberations on the bill.
Key points
1. In a detailed presentation to its central board, RBI expressed its serious concerns relating to macroeconomic and financial stability, along with the valuation of cryptos and exchange management. "The board was apprised of RBI's stance on the matter," said one person, as quoted by ET.
2. Another person familiar with discussions at the RBI's board meeting, said,“Cryptocurrencies are a serious concern to RBI from a macroeconomic and financial stability standpoint,” RBI governor Shaktikanta Das has said earlier. “As the central banker, we have serious concerns about it and we have flagged it many times.”
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3. The other members in the board had a balanced approach as well, keeping in mind the advancement in the technological space and larger implications for the financial sector.
4. It is interesting to know that once the RBI has been forced to withdraw its 2018 ban on digital currencies after a Supreme Court decision, but still RBI holds the same stance.
5. The Central government had listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for introduction in the Lok Sabha in the winter session of parliament. But as media reported,the bill is unlikely to be introduced in the current session as the government wants to hold wider consultations. The proposed bill aims to create a framework for the creation of an official digital currency while prohibiting private cryptocurrencies in India to be issued by the RBI.
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