RBI Has 'Major Concerns' Over Cryptocurrencies: Shaktikanta Das

The Reserve Bank of India (RBI) has “major concerns” about cryptocurrencies, Governor Shaktikanta Das said on Wednesday, flagging potential risks to financial stability. Das said he had communicated his concerns to the government, which has largely opposed trading in private cryptocurrencies in recent years. He said the RBI’s plans to launch its own digital currency remained a “work in progress”. “We have major concerns from the financial stability angle,” Das told news channel CNBC-TV18 in an interview, adding that the RBI was “targeting to launch” a digital currency.

“It will be very difficult and not possible for me to give a date as there are several loose ends that need to be tied up and it is receiving our full attention.” Bitcoin pared gains following Das’ comments. It was up 1.5 per cent at $49,622 by 0715 GMT, having traded 5 per cent higher in early trade.

The comments come as parliament is due to discuss the potential introduction of a law to ban private cryptocurrencies such as Bitcoin in the current session of Parliament, according to a legislative agenda. The government panel in 2019 recommended banning all private cryptocurrencies with a jail term of up to 10 years and heavy fines for anyone dealing in digital currencies.

The central bank told lenders in 2018 they could not offer any banking services to any cryptocurrency traders or exchanges, but the order was challenged in court and eventually reversed by the top court.

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