Indian Central Bank RBI Favors Complete Crypto Ban, Says Partial Ban Won’t Work – Regulation Bitcoin News

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The Central Bank of India, the Reserve Bank of India (RBI), has reportedly told the central board of directors that it favors a complete ban on cryptocurrencies, declaring that a partial ban will not work. The central bank reiterates that it has serious concerns about crypto. Meanwhile, the Indian government is reportedly making further changes to the crypto bill.

RBI wants a ban on cryptocurrencies, says a partial ban will not work

The Reserve Bank of India (RBI) held the 592nd meeting of the central board of directors on Friday under the chairmanship of Governor Shaktikanta Das. The central board is the highest decision-making body of the apex bank.

The board reviewed the current domestic and global economic situation, developing challenges and remedial measures. The directors also discussed various aspects related to cryptocurrency and central bank digital currency (CBDC).

The RBI reportedly said at the meeting that it was in favor of a complete ban on cryptocurrencies, noting that a partial ban would not work, the Economic Times reported, citing unnamed sources familiar with the discussions.

Senior RBI officials highlighted several areas of crypto-related concern, including traceability of transactions, valuation, extreme price volatility, legal issues, and identification of participants in transactions.

Governor Shaktikanta Das reiterated his anti-crypto stance, stressing that cryptocurrencies are a major threat to any financial system as they are unregulated by central banks.

Das has repeatedly said that the central bank has serious concerns about cryptocurrencies, stating that they pose serious threats to India’s macroeconomic and financial stability.

“There is a need for much deeper discussions (on crypto). When the central bank says it has much deeper concerns about macroeconomic and financial stability, there are much deeper issues involved that are part of this,” the governor said. central bank in october.

The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 were listed for consideration in the winter session of Lok Sabha, the lower house of the parliament of India. The government is reportedly planning to regulate crypto assets with the Securities and Exchange Board of India (SEBI) as the main regulator but to ban the use of crypto for payments. However, there are reports that the government is still reworking the bill and is likely to introduce it in the budget session instead.

Meanwhile, the RBI is also working on a digital rupee, which it plans to implement in phases. The central bank said last week that there would be two types of CBDC: wholesale and retail. “A lot of work has been done on wholesale based CBDC while retail is a bit complicated and will take more time. We will release a pilot, which is ready first,” explained RBI Deputy Governor T. Rabi Sankar.

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Do you think the RBI will convince the Indian government to ban cryptocurrencies altogether? Let us know in the comments section below.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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