RBI Wants A Complete Ban On Cryptocurrency, Claiming That Partial Ban Would Be Ineffective

The Reserve Bank of India (RBI) has reportedly told the central board of directors that a complete ban on cryptocurrencies is preferable to a partial ban, noting that a partial ban will not work. The central bank reiterates its severe concerns about cryptocurrency.

rbi-wants-a-complete-ban-on-cryptocurrency-claiming-that-partial-ban-would-be-ineffective

The RBI favors a complete crypto ban, claiming that a partial ban will not work

Governor Shaktikanta Das presided over the 592nd meeting of the Reserve Bank of India’s central board of directors on Friday. The central board is the apex bank’s highest decision-making body.

The board discussed the present domestic and global economic conditions, as well as emerging challenges and potential solutions. Various aspects of Bitcoin and Central Bank Digital Currency (CBDC) were also considered by the directors.

According to the Economic Times, the RBI said that it prefers a complete ban on cryptocurrencies, emphasizing that a partial prohibition will be ineffective.

Governor Shaktikanta Das maintained his anti-crypto stance because cryptocurrencies are uncontrolled by central banks, they create a severe threat to any financial systems, such as macroeconomic and financial stability.

The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 have been scheduled for debate in the Lok Sabhaf. The government is regulating crypto assets with the Securities and Exchange Board of India (SEBI) serving as the primary regulator while prohibiting the use of crypto for payments. According to rumors, the government is still working on the bill and would introduce it during the budget session.

Meanwhile, the RBI is developing a digital Rupee that will be phased in overtime. RBI Deputy Governor T. Rabi Sankar explained: “We would release a pilot, whichever is ready first.”

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