RBI Governor reiterates his reservations about Crypto, states it has ‘far deeper issues’

RBI governor Shaktikanta Das on Tuesday exhorted his disapproval of the legalisation of cryptocurrency in India by conveying that the online currency has ‘far deeper issues’. The RBI governor has expressed his concerns for the second time in a week when the central government is looking forward to making measures to regularise it.

While addressing the 8th SBI Banking and Economics Conclave, the RBI chief pressed upon his concerns against the ‘decentralised currency’ and said that the RBI has concerns over its usage, as the online currency has the potential to pose a threat to the country’s economic and financial stability.

Shaktikanta Das reiterates his reservation on Crypto, states it has ‘far deeper issues’

He further proclaimed that when the RBI says it has serious concerns on cryptocurrencies, there are deeper issues involved and a deepr discussion is needed.

"When the RBI, after due internal deliberation, says that there are serious concerns on macroeconomic and financial stability, there are deeper issues, which need much deeper discussions and much more well-informed discussions, '' he said, as reported by PTI.

Earlier, Shaktikanta Das had promulgated his reservations on the cryptocurrency and had remarked that online currencies can be dangerous for the country’s financial stability. He had also questioned the number of investors trading on them as well as their claimed market value.

"We have received a lot of feedback that credit has been provided to open accounts and various other kinds of incentives are being provided to open accounts, but the total account balance is just about Rs 500, Rs 1,000 or Rs 2,000, and that covers about 70 to 80% of the accounts," he said.

Das claimed that the value of virtual currency transactions and trade has increased, but that the number of accounts are inflated. The governor questioned the current cryptocurrency trade numbers, claiming that credit is being used to attract investors to create accounts.

Government to propose measures on Crypto in Winter Session 

The statement comes days after Prime Minister Modi held a meeting on cryptocurrencies over the widespread use and use of the currency for illegitimate purposes. The meeting took note of false claims of high profits on its investments. The Parliamentary Standing Committee on Finance reviewed the advantages and disadvantages of crypto finance with various stakeholders on Monday, according to PTI, and several members were in favour of regulating cryptocurrency exchanges rather than banning them. The central government is expected to introduce a measure on cryptocurrencies at the winter session of Parliament, which begins on November 29.

With PTI Inputs

Image: PTI/ Pixabay