For the second time in a week, RBI Governor Das's statement against cryptocurrency
Many issues related to cryptocurrency need serious consideration: RBI Governor
Ahmedabad: After discussions with Prime Minister Narendra Modi and various experts, critics and exchange operators on cryptocurrency at a meeting of the Standing Committee of the Finance Ministry, the Governor of the Reserve Bank of India on Tuesday reiterated that the country's economic and financial market stability Bank of India has serious concerns against it.
Going a step further, he added that he did not agree with the large number of crypto accounts in the country, adding that blockchain technology has been around for ten years and could be developed without cryptocurrency.
"While the central bank has stated that we have serious concerns about this financially and financially, it means that there are deeper issues involved," said Reserve Bank Governor Shaktikanta Das at the Banking and Economic Conclave organized by State Bank of India in Mumbai today. Said the participant.
The governor added that there was a lack of in-depth discussions on these important issues or crypto in the ongoing discussions. However, he clarified that he was unaware of the details of the ongoing discussions between the standing committee and the government. 'My views are based on internal discussions and studies of the Reserve Bank. Once the country's central bank says there are serious concerns, it should be understood that there are deeper issues than what is being discussed outside, "the governor said.
Over the last few years, the Reserve Bank has taken a tough stance on cryptocurrency. In a circular in 2018, financial institutions and banks were banned from engaging in transactions involving cryptocurrencies. However, this circular was quashed by the Supreme Court.
Banks and financial institutions were recently ordered to strictly adhere to cryptocurrency-linked KYC, money laundering and other rules, despite the prohibition of financial transactions. At present, there is no control over cryptocurrency in India, nor is there any control over any institution or government agency on the exchanges that facilitate buying or selling of this currency.
The meeting took place amid discussions over whether the digital currency could be transferred from one person to another without intermediaries, as it could not be used as a currency by any country's government or central bank, and could be used for misuse, black marketing and drug trafficking. Prime Minister Narendra Modi himself favored restraint and curbing the misuse of cryptocurrency in an earlier meeting.
On Monday, a meeting of the standing committee was held under the chairmanship of Jayant Sinha, former finance minister of the Modi government. At the committee meeting, various parties presented their views on Crypto Finance: Opportunities and Challenges.
Many members present at the meeting were in favor of controlling or regulating such a currency but opposed a complete ban on it. Crypto Exchange, meanwhile, claims that it has 100 million customers buying and selling digital currency in India with an investment of about Rs 6 lakh crore.
This figure was exaggerated by the Reserve Bank governor. '70 to 80 per cent of the people in the country have small accounts. Some of these accounts have only Rs.500 to Rs.5000. The volume of cryptocurrency in the country has definitely increased but the number of accounts is a bit higher. Various schemes are running to open many accounts, 'said the governor.
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