INDIA
RBI For Complete Ban on Cryptocurrency Amid Rising Concern Over Unregulated Crypto Market
Amidst the rising concern over the unregulated Crypto Market, the Centre earlier informed the Parliament that a bill facilitating the regulation of Cryptocurrency and Official Digital Currency is under finalisation for consideration of the Cabinet as opposed to the Reserve Bank stand for a complete ban on the virtual currency.
Amidst the rising concern over the unregulated Crypto Market, the Centre earlier informed the Parliament that a bill facilitating the regulation of Cryptocurrency and Official Digital Currency is under finalisation for consideration of the Cabinet as opposed to the Reserve Bank stand for a complete ban on the virtual currency.
According to the media report, the Reserve Bank of India in the 592nd meeting of the Central Board of Directors of Reserve Bank of India held in Lucknow on December 17, said, it favors a complete ban on cryptocurrency. The Board also discussed various aspects relating to Central Bank Digital Currency and Private Crypto Currencies. Cryptocurrency Scammers Netted $7.7 Billion Worth of Digital Currency From Victims in 2021: Report.
According to reports, citing the threat the virtual currency poses, the senior officials also highlighted further areas of concern regarding the cryptocurrency during the meeting which include trackability of transactions, valuation of cryptocurrency, among others.
The Reserve Bank of India has been repeatedly raising concerns on the de-stabilising effect of cryptocurrency on the monetary and fiscal stability of a country. Earlier addressing the presser, RBI Governor Shaktikanta Das raised concern over Cryptocurrencies from a macroeconomic and financial stability standpoint.
"As the central banker, we have serious concerns about it and we have flagged it many times," the Governor added.
Earlier while delivering the keynote Sydney Dialogue, Prime Minister Narendra Modi called on all democratic nations to work collectively to ensure cryptocurrencies like Bitcoin and other volatile assets do not end up in the wrong hands.
RBI called for a ban on cryptocurrency:
Earlier in 2018, the RBI had issued a circular stating ‘entities regulated by the Reserve Bank shall not deal in Virtual Currencies or provide services for facilitating any person or entity in dealing with or settling Virtual Currencies’. However, the circular was later quashed by the Supreme Court in the year 2020.
About Cryptocurrency and Regulation of Official Digital Currency Bill, 2021:
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, seeks to “create a facilitating framework for the creation of the official digital currency to be issued by the RBI. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
(The above story first appeared on LatestLY on Dec 21, 2021 11:14 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
