RBI Governor Shaktikanta Das has once again raised “major concerns” about cryptocurrencies. Speaking at a media event on Thursday, the Reserve Bank of India (RBI) chief said the central bank has conveyed its “serious and major concerns” about cryptocurrencies to the government. He also mentioned that the government will now have to decide on how to deal with the proliferation of such platforms.
RBI Governor Das said that we need “credible answers” on contribution of private cryptocurrencies to the Indian economy going forward.
This is not the first time that the RBI chief has warned the Centre on the cryptocurrency front. Earlier in February this year, Das flagged potential risks to the financial stability.
Mr Das stated that he had communicated his concerns to the government, which has largely opposed trading in private cryptocurrencies in recent years.
In May 2021, the Deputy Governor of RBI said that they were considering ways to bring out a Central Bank Digital Currency (CBDC).
Recently, former RBI Governor R Gandhi told Bloomberg that cryptocurrencies should be treated as an asset or commodity in India and governed by existing laws for exchanges.
Mr Gandhi’s comments come as the government, which initially had proposed a ban on crypto trades, finalizes regulations for digital currencies.
Though the central bank has repeatedly voiced its concerns to the government over cryptocurrencies, trading in the assets surged to $6.6 billion in May, compared with $923 million in April 2020, according to Chainalysis.
Currently, cryptocurrencies falls under no regulation in India, which makes it a grey area for Indian investors.