Attention Crypto Lovers! Reserve Bank of India Is In Favor Of Complete Ban On Cryptocurrency
Investors who actually engage in cryptocurrencies were looking forward to the winter session in the hopes of learning more about the current state of cryptocurrencies in India.
The cryptocurrency regulation bill was queued to be tabled in this winter session, but the government is of the view that the legislation around cryptocurrency must be in tandem with the global framework, which is still evolving; and it needs some re-work.
Many aspects remain unanswered, such as how the central government would tax the unrecognized "asset class" and whether the central bank will create its own digital currency.
The Reserve Bank of India (RBI) has reportedly stated that its central board does not support the regulation of cryptocurrencies but rather an outright ban. The central bank emphasized financial stability and macroeconomics, as well as crypto valuation and exchange management, in a presentation to its central board.
“The board was apprised of RBI’s stance on the matter,” people knowing the matter told the leading financial daily, The Economic Times. Also, the central bank has raised concerns about regulating intangible assets that originate overseas.
As per the report, the central bank in the board meeting said that cryptocurrencies can easily be traded on foreign exchanges, alarming issues regarding the anonymity of transactions.
It is to be noted that RBI is maintaining its stance to call for outright ban on cryptos. In 2018, the honorable Supreme Court of India lifted the ban on digital currencies imposed by the apex bank, following which RBI had to soften its stand.
“Cryptocurrencies are a serious concern to RBI from a macroeconomic and financial stability standpoint,” RBI governor Shaktikanta Das has said earlier. “As the central banker, we have serious concerns about it and we have flagged it many times.”
The financial daily stated that some board members in the board meeting were of the view that a balanced approach should be pursued to these crypto-assets, citing technological advancements and broader ramifications for the financial system.
The RBI announced on Friday that it had discussed several aspects of the central bank's digital currency and private cryptocurrencies.