The Reserve Bank of India (RBI) has “major concerns” about the dangers posed by the cryptocurrencies to economic stability, governor Shaktikanta Das mentioned in an interview on Wednesday. At the similar time, the central bank is on track to launch its digital currency, he mentioned, devoid of specifying a timeline for the completion of the project.
In an interview with CNBC-TV18, Das mentioned, “We have certain major concerns about cryptocurrency. We have communicated them to the government. It is under consideration with the government and I do expect and I think that sooner or later, the government will take a call and if required, the Parliament also will consider and decide.”
He simultaneously added that blockchain technologies is various from cryptocurrencies and the positive aspects of the former have to be exploited. “But, on crypto, we have major concerns from the financial stability angle,” he mentioned.
Das created a distinction in between the strategy to launch direct retail participation in the government securities marketplace from the digital currency. The RBI is working to launch its digital currency and it is work-in-progress at present. “A lot of work is going on. There is an RBI team working on it, both the technology side as well as the procedural side — how it will be launched and rolled out. We are very much in the game,” Das mentioned, adding, “If you ask me a date, at this point, it will be difficult for me to say because several loose ends need to be tied up. But it’s receiving our full attention.”
In a booklet on payment systems released final month, the RBI had mentioned that when private digital currencies (PDCs), virtual currencies (VCs) and cryptocurrencies (CCs) have gained recognition in current years, in India, regulators and governments have been sceptical about these currencies and are apprehensive about the linked dangers.
“Nevertheless, RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalise it,” the booklet mentioned.