India’s central bank RBI still has serious concerns” about cryptocurrency regulation

Reserve Bank of India (RBI) Governor Shaktikanta Das has once again raised concerns about the impact of cryptocurrencies on India's financial stability.

Crypto Presents “Serious Concerns” to RBI

The Indian government is currently waiting for the cabinet to take up the crypto law. However, the country's central bank, the Reserve Bank of India (RBI), still has major concerns about cryptocurrencies. Governor Shaktikanta Das reportedly said on Wednesday:

We have serious, major concerns about cryptocurrency in terms of financial stability, [and] have conveyed the same to the Indian government.

This is not the first time that the RBI chief has raised concerns about cryptocurrencies. In June he did similarly said: "We have major concerns about cryptocurrency, which we have communicated to the government. In terms of advising investors, central banks do not give investment advice. It is up to each investor to make their own assessment, conduct their own due diligence and consider their own investments very carefully."

India's Finance Minister Nirmala Sitharaman called in July: "The Cabinet note is ready. We have to see when the Cabinet can take it up and think about it so we can postpone it then."

However, the Economic Times reported last week that the Indian government is still working on regulating cryptocurrencies and plans to consider them as raw materials and rules per use case.

This week, Chairman of India's Standing Committee on Finance, Jayant Sinha, called India’s crypto legislation will be “distinctive and unique” due to the country’s unique circumstances. It will not follow countries like the US, Japan or El Salvador that have recently adopted Bitcoin legal tender.

Meanwhile, RBI announced a digital rupee model by End of year and start phases.

What do you think about the RBI Governor's concerns? Let us know in the comments section below.

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