In Brief:
- Yesterday, RBI dicussed various aspects related to CBDC and private cryptocurrencies.
- In the meeting, board members expressed concerns about cryptocurrencies citing financial instability of the country.
- However, Sachin Chaturvedi, a board member, opined that India should not close the door on private cryptos.
In the 592nd meeting of the apex bank’s central board of directors held in Lucknow, RBI Reserve Bank of India (RBI) dicussed various aspects related to Central Bank Digital Currency (CBDC) and private cryptocurrencies, as revealed by sources.
According to a press release issued by RBI, the board reviewed the current domestic and global economic situation, evolving challenges and remedial measures, as well as CBDC and cryptocurrencies at the meeting.
As revealed by a local news portal, a majority of the board members expressed concerns about private cryptocurrencies and their consequences including the serious threats to the macroeconomic and financial stability of the country.
Governor Shaktikanta Das too, had reinstated his stance against allowing cryptocurrencies, quoting they are serious threats to any financial system since they are unregulated by central banks.
Refreshingly, Professor Sachin Chaturvedi, a board member, was of the opinion that India should not close the door on private cryptos. He also stressed on ‘certainly not impose a ban on them’, as revealed by sources.
The meeting was attended by RBI Deputy Governors Mahesh Kumar Jain, T. Rabi Sankar, M Rajeshwar Rao, Dr Michael Debabrata Patra and board directors Revathy Iyer, Professor Chaturvedi, Satish K. Marathe, S. Gurumurthy, and Debasish Panda, secretary, Department of Financial Services, also attended the meeting.
When it comes to regulatory bodies, the reservations regarding cryptos have always been around since the time its popularity amongst the masses have increased. Recently, IMF Chief Economist Gita Gopinath suggested that although regulating crypto assets and currencies is essential, banning them would not work.
Hence, it is no surprise that the Indian Government is yet to decide on its crypto future amidst all these apprehensions.
