RBI Governor Shaktikanta Das has huge concerns associating with cryptocurrencies which may financially create an unstable situation.
Das has put forth his concern to the government as it has been largely opposing trading in private cryptocurrencies over recent years. He further said RBI is going to start with its own currency and has only said that for the same “work in progress”.
The government is highly concerned about the free use of cryptocurrencies will financial make the economy unstable and that proper steps need to be taken to curb the growing use. Das in an interview to CNBC-TV 18 has said that RBI was “targeting to lunch” a digital currency and it is to be seen, as to when that phase comes.
When asked by the reporter regarding the possible date for the same, he said that he is unable to provide any tentative date as he is going to connect several loose ends while creating a strategy so that things can progress and come to the final output very soon. It is to be seen, when the government introduces a new currency.
The significance of the comment by the government comes in the wake of a parliamentary discussion about the introduction of a law to ban private cryptocurrencies in the form of Bitcoin which may likely to take place in the current session of parliament.
There has been a 2019 statement where the Indian government recommended banning all sorts of private cryptocurrencies and there was a jail term of 10 years along with heavy fines for those who flout the norms and deal in digital currencies.
It was in 2018 that the central bank told lenders that they were unable to furnish any banking services to those who are dealing in cryptocurrencies. However, people went to the court to challenge the same and that has forced the court to finally reverse it.
The chief executive of the WazirX cryptocurrency exchange namely Nischal Shetty has said that it is just a misconception that crypto is going to pose competition to the Indian rupee which will make the financial scenario unstable. He further said in one of his recommendations that the concerned authorities have a way to regulate it, so that financially the situation can remain stable.
His voice was also echoed by Rashmi Deshpande who is a partner at law Khaitan and Co. She has been the face of representing crypto firms in top court and she opined that there is a need to regulate the market.
Over all, there has been different voice coming from various people in favor of making crypto functions where they want and expect the government to treat crypto as an asset quite similar to other securities. Hence, this is how the government can regular them as per its functioning.
It is to be seen how the government reacts to the whole scenario and if it is going to move forward with the ban or not, only time will tell.