TL;DR Breakdown:
- The Reserve Bank of India supports the idea of a complete crypto ban.
- RBI presented the negative impact of crypto to the central board in the latest board meeting.
- The Indian crypto community is fearful about a potential ban like China.
India’s central bank RBI has communicated its support to the central board in favour of a complete cryptocurrency ban in India. According to sources from the Economic Times, RBI made a detailed presentation in the latest board meeting the emphasized the significant negative concerns of crypto trading and its impact on the financial stability of the country. RBI also highlighted issues of crypto exchange management.
The Reserve Bank of India is sticking to its harsh stance on crypto. According to the institute, the nature of cryptocurrencies, and the fact that it allows anonymity of transactions across foreign exchanges, poses a critical threat to India’s economy.
Previously, RBI’s governor Shaktikanta Das said that the central bank has flagged crypto issues many times, and wants the government to strictly consider its total ban in the country.
The Reserve Bank of India has no optimistic view of crypto
It seems that the Reserve Bank of India doesn’t want to display a balanced view of crypto adoption in India. The institute has been relentlessly highlighting the negative aspects of cryptocurrency but completely shuts down any optimistic view of decentralized currencies.
Last month, the Indian government had listed a cryptocurrency regulation bill to be introduced in the winter session of the parliament to seek a complete ban of crypto. Although it was listed to be heard in the budget session, the government had a second thought and didn’t introduce the bill.
There have been reports that the government will seek to regulate crypto in India, rather than imposing a complete ban. For now, it seems like the Indian government will seek wider consultation before making any significant decisions.
If the proposed bill were to be passed, the government would have considered creating an official digital currency issued by the RBI. So, it’s quite clear why RBI supports the idea of a complete crypto ban. Sources have also highlighted that the central board has discussed several aspects of RBI’s potential digital currency and private cryptocurrency.
The Indian crypto community is significantly concerned regarding this whole dilemma. It still remains unclear whether all of these discussions are yet another FUD, or if the Indian government might actually go through with a complete crypto ban like China.
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