The RBI Governor on crypto said that digital currencies are a very severe issue as far as the Reserve Bank of India is concerned, the issues and concerns arrive from the perspective of financial stability and macroeconomy. Let us have a look at the RBI cryptocurrency news.
RBI Governor On Crypto: What Was Discussed So Far?
The number of Indian citizens who are trading digital currencies has increased to a great extent as stated by the governor of RBI (Reserve Bank of India) Shaktikanta Das on Wednesday while portraying once again his concern over the growth of digital currencies in India. According to Das, nearly more than 70% of the investors did not invest over Rs 3000. Digital currency exchanges have recently asserted via advertisements that crypto investments in India have crossed Rs 6 lakh crores with more than 10 crore Indians trading actively in this arena.
While speaking with a publication, Das said,
“In terms of the amount that has been invested it’s definitely growing and anecdotally we hear so many things. But, I am not so sure about the numbers that are being quoted. Because, whatever information we have, with a reasonable amount of confidence I can say that the number of participants in the crypto market seems exaggerated.”
The bulk of investors nearly 70% or even more than that have invested nearly Rs 1000 to Rs 3000, possibly there is a chance of enrolling as many people as possible, Das asserted. He also repeated his concerns on the financial instability these investments can cause and asserted that the Indian government is actively taking into account its suggestions. In the same interview, RBI Governor on crypto said,
“People are doing certain activities, and as a central bank, we have serious concerns from the macroeconomic and financial stability point of view. How the issue has to be dealt with, we have given our detailed suggestions to the government. As far as I know, the matter is under active consideration of the government and it will decide.”
A famous publication house has recently reported that the government is aiming to table the latest cryptocurrency bill, 2021 on regulating digital currencies in the parliament’s budget session. The present plan of the government includes designing a broad framework revolving around crypto assets that would offer them legal confidence in India. There were many RBI regulations on cryptocurrency.
In the meantime, the digital currency exchanges are pushing for the definition of varied types of digital assets. The exchanges with the government to at least segregate among varied crypto assets and also technologies like Non fungible tokens (NFTs), Meme coins like Dogecoins, and DeFi (Decentralized Finances). According to the prevailing digital currency bill draft, the government is aiming to just put the basic framework in place without hinging the class of asset of who is going to regulate the digital currency. There can be a chance of CBDC (Central Bank Digital Currency) but the RBI cryptocurrency launch date is not fixed as of now.
What The Latest Crypto Bill Has To Say?
As per a report on 9.11.2021 (Tuesday), the government of India has a chance to choose an alternative way on virtual currencies as it is set to finalize the crypto bill in India this winter. There is an RBI committee on cryptocurrency. A person from the authority said that the latest crypto bill would include developments in technology in the space of digital assets which was not present in the previous draft. According to the Finance Minister,
“The government was not against cryptocurrency and will instead look into ways it can help the country’s fintech sector”.
The watch persons of the market had prohibited the investment advisers from advising on tools that are unregulated that including digital gold, digital currencies, and other such commodities. SEBI said,
“It has come to the notice of SEBI that some registered investment advisers are engaged in unregulated activity by providing a platform for buying/ selling/ dealing in unregulated products including digital gold.”
Conclusion
In the past few months, Indian investments in digital currencies hit the $10 billion mark. Presently, nearly 10.5 crores or 7.9% of Indians have invested in digital currencies and the number is rising with each passing day. But in an interview, RBI Governor on crypto said that there is a huge concern about the rising usage of digital currency in India. The government of India may soon start to follow its latest crypto bill 2021.
