India’s central bank RBI still has ‘serious concerns’ about cryptocurrency

September 12, 2021

The Indian government is currently awaiting the Cabinet to take up the crypto bill. However, the country’s central bank, the Reserve Bank of India (RBI), still has major concerns about cryptocurrencies, according to UK Today News.

Governor Shaktikanta Das reportedly said, “We have serious, major concerns on cryptocurrency with respect to financial stability, [and] have conveyed the same to the government of India”. Even in June he said, “With regard to advice to investors, well, central banks don’t give any investment advice. It’s up to each investor to make his own appraisal, to do his own due diligence and take a very careful call with regard to his own investments.”.

India’s finance minister, Nirmala Sitharaman, said in July: “The Cabinet note is ready. We have to see when the Cabinet can take it up and consider it so that then we can move it.” However, according to reports, the Indian government is still working on how to regulate cryptocurrencies and is planning to treat them as commodities and regulate per use cases.

This week, the chairman of India’s Parliamentary Standing Committee on Finance, Jayant Sinha, said India’s crypto legislation will be “distinct and unique” due to the country’s unique circumstances. It will not follow countries such as the U.S., Japan, or El Salvador which recently adopted bitcoin as legal tender.
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