The Central Board of RBI has told that cryptocurrencies in India should be banned completely. This was stated in a meeting of the RBI on Friday. Earlier, the government had also prepared to bring a bill for the regulation of cryptocurrencies in the current session of Parliament, but it has been postponed for the time being.
The meeting of the Central Board of Directors of the RBI was held in Lucknow under the chairmanship of Bank Governor Shaktikanta Das. A press release issued after the meeting said it discussed several issues related to digital currency and private cryptocurrencies. Sources said, internal members of the RBI are not in favor of private cryptocurrencies and want to strictly ban them.
Cryptocurrency volatility is a matter of concern
Most members of the RBI at the meeting expressed concern about its impact on private cryptocurrencies and financial stability. He also discussed the bank and the government’s strict steps for its regulation. The board members also discussed the financial risk associated with parallel currency.
The Reserve Bank made a detailed presentation before the Board on the presence and impact of cryptocurrency. Prime Minister Narendra Modi had also discussed the matter in several phases. Earlier, in July 2019, a high-level government panel had also advocated banning all types of cryptocurrencies. It had recommended a fine of Rs 25 crore and a sentence of 10 years for dealing in cryptocurrencies.
A day before the Reserve Bank meeting, International Monetary Fund (IMF) Chief Economist Geeta Gopinath had said that instead of completely banning crypto, it should be brought under the ambit of regulation. He said emerging economies should regulate this digital token in the best possible way instead of banning it. He said a global policy should be formulated on this.
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On the other hand, there are reports that the government may avoid bringing bills on cryptocurrencies this session. The session of Parliament will end next week and then the next session will begin in the Budget. This will be followed by election ejaculation in 5 states. It is believed that the government may bring the bill to Parliament after the elections. The central bank has repeatedly put its strong views against cryptocurrencies. It says cryptocurrencies pose a major threat to the country’s macroeconomic and financial stability. It has also doubted the number of investors trading on cryptocurrencies and their claimed market value.
Beth is the Editorial Director at Crunchoid Inc. Prior to joining Crunchoid, Beth had a hand in a number of online and print publications, including TImes as a chief copy editor .