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RBI Told Board Of Directors It Wants A Total Cryptocurrency Ban, Economic Times Says

The Reserve Bank of India said it supported a complete cryptocurrency ban at a meeting of its central board on Friday, according to the Economic Times, citing anonymous people familiar with the deliberations.

New Delhi: India’s central bank made a detailed presentation to its board highlighting “serious concerns” about the impact of cryptocurrencies on macroeconomic and financial stability as well as trade management, the newspaper said.

The RBI said in June it had “serious concerns” about cryptocurrencies, which it communicated to the government. Its board discussed its digital currency and private cryptocurrency project at its Friday meeting, the RBI said in a statement released the same day.

The Reserve Bank of India (RBI) has reportedly told its board that it supports a complete cryptocurrency ban and that partial limits will not work. In a presentation to its central council, the umbrella bank highlighted issues related to financial and macroeconomic stability as well as cryptocurrency valuation and trade management. “The board has been briefed on the RBI’s position on the matter,” people with knowledge of the matter told ET.

In addition, the central bank has raised concerns about the regulation of intangible assets that originate from abroad. A person familiar with the discussions at the RBI’s board meeting on Friday said cryptocurrencies are available for trading in foreign currencies, indicating concerns about the anonymity of transactions.

It should be mentioned here that the RBI persists in its opposition to the recognition of virtual currencies. While Apex Bank was forced to lift its 2018 ban on digital currencies following a Supreme Court order, it has not changed its position. .

“Cryptocurrencies are of serious concern to the RBI from a macroeconomic and financial stability perspective,” RBI Governor Shaktikanta Das previously said. “As a central banker, we have serious concerns about this and have reported it repeatedly Quoting the second person.

The financial newspaper reported that some board members have sought a balanced approach on these crypto assets, citing expansions in the tech space and greater implications for the financial sector.The RBI said on Friday it discussed various aspects related to the central bank’s digital currency and private cryptocurrencies.

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