Serious concern on the financial stability of cryptocurrencies: RBI Governor

Shaktikanta Das, Governor of the Reserve Bank of India (RBI), on Thursday said that the central bank has “serious and major concerns” about the financial stability of the cryptocurrency.

“We have serious, major concerns on cryptocurrencies with reference to financial stability, and we’ve conveyed those concerns to the government of India,” the RBI head stated at an event.

This isn’t the first time the governor of the Reserve Bank of India has expressed his concerns about cryptocurrencies.

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The central bank has expressed its worries about cryptocurrencies to the government, and it is up to the government to make a decision on the subject, Das said, adding that more clarification is needed on cryptocurrency’s role in the economy.

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Das had reiterated his critical stance on cryptocurrency on June 4 as well. He said that the RBI has grave concerns about cryptocurrencies, which they have expressed to the authorities. He also advised investors to do their own due diligence and to make a very careful decision on his or her own investments as central banks do not provide any investment advice and It is up to each investor to make his or her own assessment.

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In light of the Government’s current efforts to finalise national legislation on private cryptocurrencies, Das’ recent remarks are noteworthy. Finance Minister Nirmala Sitharaman on August 16 said that a bill to regulate cryptocurrencies and their burgeoning market in India is anticipated to be taken up by the Union cabinet in the near future.

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While the RBI is skeptical of private cryptocurrencies, it supports the introduction of a central bank digital currency. In the past, RBI officials have indicated that the central bank is currently working on this model and may reveal some decisions before the end of the year.

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About 1.5 crore Indian citizens have invested in cryptocurrencies worth Rs 15,000 crore, according to statistics from crypto exchanges. And the number is growing as more individuals begin to engage in cryptocurrency. In the blockchain and crypto arena, there are over 350 startups that are active in the market.