RBI: Partial crypto ban won’t work

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MUMBAI: The Reserve Bank of India (RBI) said in a presentation to its central board that a cryptocurrency ban must be total and partial restrictions will not work. During the presentation, senior officials highlighted the issue of transaction traceability, crypto valuation, extreme price volatility, legal issues, and the identification of different players in the crypto transaction chain as areas of concern. Among the board members, Revathy Iyer (former Deputy Comptroller and Auditor General) expressed the need to proceed with caution. However, another board member, Sachin Chaturvedi (Managing Director of the Research and Information System for Developing Countries) warned against policymakers who take extreme measures and risk being cut off. worldwide. He pointed to cases in the past where the government had to back down. Debasish Panda, secretary in the financial services department, who also attended the meeting, did not comment on the crypto issue. The 592nd central council meeting also discussed the status of the central bank’s digital currency. Additionally, the board reviewed the RBI’s half-yearly income statement for the six months ended September 30, 2021. The board’s discussion on cryptocurrencies comes at a time when the government has listed the cryptocurrency. and the regulation of the official digital currency bill, 2021 for the winter session of Parliament. The Center has been quiet about the legislation. Wording in the bill – indicating that it seeks to create an enabling framework for a central bank digital currency and allow certain exceptions to crypto to promote the underlying technology – has sparked speculation that cryptos could be legalized as an asset. The RBI has been steadfast in its opposition to the recognition of alternative currencies. While the central bank was forced to withdraw its 2018 ban on cryptocurrencies following a Supreme Court order, it has not changed its mind. “There is a need for much more in-depth discussions (on cryptography). When the central bank says it has much deeper concerns from the perspective of macroeconomic and financial stability, there are much deeper issues that are part of it, ”RBI Governor Shaktikanta Das said in October. 2021 during a speech at an event. He said there was a need to discuss these concerns. The board of directors also discussed various areas of operations of the Reserve Bank, including the operation of local councils, the activities of some central departments and the draft ‘Banking Sector Trends and Progress Report in India, 2020-21, “” the RBI said. said in a statement. Central bankers attending the board meeting included Vice Governors Mahesh Kumar Jain, Michael Debabrata Patra, Mr. Rajeshwar Rao and T Rabi Sankar. Other directors of the central council Satish K Marathe and S Gurumurthy also attended the meeting.

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