Cryptocurrencies pose risks to emerging markets: Shaktikanta Das

RBI’s take on Bitcoin ETFs: RBI Governor Shaktikanta Das reaffirmed India's cautious stance on cryptocurrencies, underscoring the potential impacts they could have on emerging markets during a press briefing on Thursday. Despite a growing trend of acceptance in various global jurisdictions, Das said that the Reserve Bank of India's (RBI) position remains steadfast.

Das's comments come in the wake of the US securities regulator's recent nod to the inaugural US-listed exchange-traded funds tracking Bitcoin. Such developments have ignited optimism within the crypto sphere but have not swayed the RBI's perspective.

"Regardless of global shifts, both my standpoint and that of the RBI concerning cryptocurrencies remain consistent," Das remarked. He further elaborated that navigating the crypto landscape could usher in formidable challenges for both emerging and advanced economies.

Potential threat to macroeconomic stability: Das

The central bank chief reiterated longstanding concerns that cryptocurrencies lack intrinsic value and harbour potential threats to macroeconomic stability. In contrast, Das accentuated the advantages of India's forthcoming central bank digital currency, the e-rupee. He disclosed ongoing efforts to improve the e-rupee's functionality for specific transactions, including targeted disbursements to agricultural sectors.

Furthermore, Das unveiled plans for pilot programmes integrating the e-rupee within novel wholesale market segments. Last December witnessed a milestone as Indian banks used the digital rupee for employee benefit disbursements, aiding the RBI in achieving its ambitious target of facilitating one million transactions per day by the close of 2023, according to informed sources.

In a broader context, the RBI and the National Payments Council of India are engaged in dialogues with multiple nations to explore the adoption of India's Unified Payments Interface for facilitating cross-border transactions. Additionally, Das revealed the central bank's scrutiny of AI-driven lending models deployed by financial institutions.

(With Reuters inputs)