RBI chief Shaktikanta Das says there is no disagreement between the Reserve Bank of India (RBI) and the finance ministry over cryptocurrencies. While the finance minister said the government is not ruling out all options and will take a calibrated position on crypto currency legislation, the central bank has raised some key concerns.
No disagreement on cryptocurrencies between RBI and finance ministry
RBI Governor Shaktikanta Das on Thursday answered some questions on cryptocurrencies, digital rupee and upcoming legislation on digital currency at the Indian Economic Conclave organised by The Times Network.
Questions have arisen as to whether the finance ministry and the Reserve Bank have the same view on cryptocurrencies in India. Although Finance Minister Nirmala Sitharaman said the government was not ruling out all options related to cryptocurrencies and would take a calibrated approach, the central bank has expressed grave concerns about cryptocurrencies.
Asked if there was any disagreement between the central bank and the finance ministry over cryptocurrencies, the RBI governor said at the economic conclave today:
I don’t think the Treasury or the Federal Reserve have taken a different position. I have reason to believe that the government has agreed.
I don’t think it’s a difference of opinion, Das reiterated, adding that central bank digital currency is one thing, while market-traded cryptocurrency is another.
The Governor of the Reserve Bank of India stressed that both the RBI and the government are committed to financial stability and said:
We have found that there are some concerns about the trading of these cryptocurrencies in the market. We have drawn the government’s attention to some important points.
The decision has not been taken yet and the government will take a decision sooner or later, Das said.
What do you think of the RBI governor’s comments on cryptocurrencies? Let us know your comments in the section below.
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frequently asked questions
Can the government control cryptocurrencies?
First, governments can set the price of assets, such as fiat currencies, by buying and selling on international markets. … Most states require a letter of guarantee or its equivalent in fiat currency to trade cryptocurrencies in their jurisdiction.
Why is the RBI not allowed to use cryptocurrencies?
In 2018, the Reserve Bank of India effectively banned cryptocurrency transactions following a series of frauds that took place in the months following Prime Minister Narendra Modi’s sudden decision to ban 80 percent of the nation’s currencies.
Has the RBI banned cryptocurrencies?
In early 2018, the Reserve Bank of India banned crypto transactions and warned all banks to stop trading with private crypto currencies. This has interrupted cryptocurrency trading in India. However, in 2020, a Supreme Court ruling overturned the central bank’s decision for disproportionality.
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