InvestorQ : Is RBI in favour of a complete ban on Cryptocurrencies?
varsha Motwani made post

Is RBI in favour of a complete ban on Cryptocurrencies?

Ira Shah answered.
8 months ago
The Indian government along with the consultation of RBI and the finance ministry recently introduced the Cryptocurrency and Regulation of Official Digital Currency that seeks to “prohibit all private cryptocurrencies” in India. However, the bill is currently being finalized, with the government bringing in ideas and advice from the finance ministry and the RBI.

Taking the ideology of the bill forward, the RBI has recently conveyed its stance to the central board that it favors a complete ban on Cryptocurrencies. The advice of RBI comes after it presented a detailed presentation to the central board that highlighted ‘serious concerns it has with the legislation or regulation of Cryptocurrencies in India.

The concerns highlighted by RBI pertain to the overall financial stability, macroeconomic, and exchange management of cryptocurrencies. Furthermore, RBI highlighted its concerns regarding the anonymity of transactions and regulating cryptocurrencies with their origin overseas. RBI governor Shaktikanta Das has said earlier regarding Cryptocurrencies: “As the central banker, we have serious concerns about it, and have flagged it many times.”

It remains to be seen what the government will decide after considering the stance of RBI. However, even if there is a blanket ban on cryptocurrencies, the stock market is unlikely to be affected and can benefit from an influx of investment as crypto investors will look towards the stock market from earning returns. Furthermore, as RBI is expected to launch its own digital currency, blockchain technology is expected to remain and function in the future.