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RBI chief raises concerns over Cryptocurrency amid PM's 'progressive steps' promise

RBI chief raises concerns over Cryptocurrency amid PMs progressive steps promise

Mumbai: The Reserve Bank Governor of India, Shaktikanta Das, reiterated strong caution and concern regarding cryptocurrency on Tuesday, three days after a Prime Minister chaired meeting agreed that the government's future steps on the currency will be "progressive and forward-looking", The Indian Express (TIE) reports.

At a Business Standard event last week, Das had said that Cryptocurrencies are a severe concern to RBI from the standpoint of macroeconomic and financial stability. He had added then that RBI had flagged the issue before the Union government many times.

While speaking at the SBI Banking Conclave on Tuesday, Das said that RBI, as the central bank of India, has the responsibility of maintaining the country's financial stability. Due internal deliberation says that there are serious concerns on macro-economic and financial stability with other deeper issues, he said.

He added that he is yet to see well-informed discussion in the public space on these issues. Das further said that 80 per cent of the crypto accounts are small, ranging from Rs 500 to Rs 2000. Though the value of transactions and trading has gone up, the number of accounts is exaggerated.

Industry executives had told the Parliamentary Standing Committee on Finance that there were around 15 million active subscribers on their crypto exchanges in India. Also, with a total outstanding value pegged around six billion dollars, sources told TIE. An advertisement by the Internet and Mobile Association of India and crypto exchanges had claimed that crores of Indians have invested over Rs 6,00,000 crore in crypto assets.

Amid indications that the government will introduce a Bill on cryptocurrencies in the winter session of Parliament, the Standing Committee on Finance had called cryptocurrency associations and industry experts on Monday to discuss the "opportunities and challenges" in this field.

The PM chaired the meeting had acknowledged the currency as an evolving technology. But Das said he had already mentioned that it is blockchain technology and is more than10 years old. "The technology could grow and would grow without cryptocurrencies," he said.

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