- The Central Bank of India expresses strong actions against cryptocurrency.
- Earlier, RBI Governor Shaktikantha Das had expressed serious concerns over crypto.
- The Union Budget recently introduced legalizing virtual assets.
The Reserve Bank of India (RBI) comes up with stringent reservations against permitting cryptocurrency in the country. India’s business daily newspaper Business Standard tweeted that RBI has strong reservations against cryptocurrencies.
RBI has publicly expressed strong reservations against permitting cryptocurrencies@Armilu reports #RBI #cryptocurrecy #FinanceMinistry #CryptoNews https://t.co/MlP5Kkpnj7— Business Standard (@bsindia) March 14, 2022
The finance ministry of the country announced a consultation paper to plan a regulatory framework for dealing with crypto assets. Notably, the plan stated that it would accept public comments too in six months’ time. Currently, the authority is seeking ideas from institutions like World Bank, International Monetary Fund (IMF), and the Financial Stability Board (FSB)
Earlier, RBI Governor Shaktikantha Das had said that blockchain technology was a decade old, and it was here to stay and grow despite the need for cryptocurrencies. Furthermore, he said that RBI had serious concerns and issues over cryptocurrencies. Moreover, RBI has also expressed reservations on private cryptocurrencies, mentioning them as a threat to macroeconomic and financial stability.
Crypto regulations in India have been a topic of discussion for years. Although the country effectively banned cryptocurrency in 2018, the Supreme Court knocked down the ban in 2020.
However, this year’s Union budget introduced digital currency and cryptocurrencies with some regulations on them. Also, people owning crypto assets are required to pay 30% tax. Against this, many Indians have signed a petition to remove the tax.
In a recent speech, T Rabi Sankar, Deputy Governor of RBI, at the Indian Banks Association Conference said that banning cryptocurrencies would affect the absorption of blockchain technology in India. Many Indians have already invested in the crypto industry and banning it would lead to the loss of their wealth.