RBI Governor Believes Crypto has ‘Major Concerns’ While Teasing the Launch of a Digital Rupee
- Reserve Bank of India governor Shaktikanta Das expressed ‘major concerns’ on private cryptocurrencies in the country.
- RBI is still working on a central bank digital currency.
In an exclusive interview with CNBC TV18, Shaktikanta Das, the Reserve Bank of India (RBI) governor, said the central bank has “major concerns on cryptocurrencies.” The central bank has already communicated the government's concerns, who will “take a call,” and if required, Parliament will also decide on regulating crypto.
“Blockchain, not cryptocurrencies.”
Despite the underlying blockchain technology offering certain benefits that should be exploited, according to Das, cryptocurrencies still present major concerns on the country's financial stability.
“I also want to make it very clear that the blockchain technology is different,” Das said. “The benefits of it have to be exploited, that is another thing, but on crypto, we have major concerns from the financial stability angle.”
The RBI governor did not expound on the challenges that crypto causes on the financial system but said they had shared the government's findings. The Indian government will consider the points and take a call on regulating private cryptocurrencies.
RBI governor on CBDC launch
The RBI has been stern on accepting crypto as a usable currency in India. In the past fortnight, local reports stated a ban on cryptocurrency looms as the government plans to eradicate cryptocurrency payments from the country. Citing a senior official at the Indian Finance Ministry, the government is planning on an “absolute ban” on crypto, affecting transactions of Indians on foreign exchanges.
In the past month, the central bank called for the launch of a framework for its public digital rupee. Differentiating cryptos to the digital rupee, Das stated the digital rupee is still a “work in progress” on the technology side and the procedural side with plans being made on how and when the CBDC will be rolled out.
The governor, however, did not give a specific date that the digital currency is expected to launch due to “several loose ends [that] need to be tied up.”
“We are targeting to launch it. But if you ask me a date, at this point, it will be difficult for me to say.”