The Reserve Bank of India (RBI) is concerned over the influence cryptocurrencies may have on the financial strength in the economy and has taken the same to the government, Governor Shaktikanta Das said on Wednesday.
We have positive main concerns about Cryptocurrencies. We have connected them to the government. It is under attention in the government and I do imagine and I think sooner or later the government will take a request and if obligatory Parliament also will disclose and accept, he stated in an interview.
In his talk over that- I want to make it clear that Blockchain technology has changed. Blockchain technology helps to be exploited. This will be the other thing. But on crypto, we have main concerns from the financial stability viewpoint and we have shared them with the government. The government will contemplate and take a call, Das specified.
Whereas Das did not elaborate more, the central bank had in the past stated concerns on digital currencies being used for terror funding and money laundering.
The government is arranging to present a bill in Parliament to bar companies and individuals from trade in cryptocurrencies while generating a framework for an official digital currency.
The RBI had in 2018 prohibited banks and other regulated units from supporting crypto transactions after digital currencies were used for frauds. The Supreme Court cut the edges last year in response to a request by cryptocurrency exchanges.
Das stated the RBI is "very much in the game" and is ready to launch its digital currency.
Central bank digital currency is functioning out timely. RBI team is functioning on it, technology side and technical side, how it will be launched and turned out, Das added.
If this occurs, the RBI will join other central banks with that of China, where it has automated Yuan.