The Reserve Bank of India (RBI) has stated that while there are no plans to adopt digital currencies, the central bank is not against them. The central bank also clarified that the government has no plans to ban cryptocurrencies or regulate it.
India’s central bank (the Reserve Bank of India, or RBI) has yet again reaffirmed its position that cryptocurrencies aren’t legal tender and have no scope in the country’s economy. The Monetary Policy Committee (MPC) of the nation’s central bank met on Wednesday to review its monetary policy, and the ruling came in. “The MPC has reaffirmed its earlier stance that virtual currencies (VCs) are not legal tender or coin and have no legal status in India,” the central bank said in a statement. The statement said that the “virtual currency ecosystem” is not backed by any intrinsic value and is not backed by any government and is not under the purview of the RBI. However, the central bank “will monitor the developments
The Indian central bank has reaffirmed its stand on cryptocurrency, asserting that it will continue to remain anti-crypto.Its infamous circular, which ordered banks to stop providing services to companies using cryptocurrencies, may have been reversed by the courts, but India’s central bank shows no signs of softening its stance on cryptocurrencies. Reserve Bank of India Governor Shaktikanta Das reiterated the institution’s position at a press conference after the monetary policy statement, stressing: We have serious reservations about cryptocurrencies, which we have brought to the government’s attention. The governor’s comments came after the Reserve Bank of India was forced to clarify that banks should not continue to cite the now defunct Reserve Bank of India circular as a reason to reject cryptocurrency companies. According to recent media reports, the document is still being used as an alibi for banks not wanting to do business with cryptocurrency companies, even though the Supreme Court found the ban disproportionate and overturned it in March 2020. Das told reporters that the central bank was seeking clarification on the situation and the relevant RBI circular had been cancelled. It is therefore incorrect to refer to that circular. Despite the cancellation, banks remain reluctant to open up to the sector amid a general climate of uncertainty about the future of cryptocurrencies in India. This year, an anonymous source claiming to be a senior official in India’s finance ministry suggested that a long-discussed total ban on cryptocurrencies could be introduced in the country. Clarifying the status of the circular, Das stressed that banks should continue to exercise due diligence when dealing with customers involved in cryptocurrencies. The central bank has repeatedly highlighted the risks of money laundering and terrorist financing to which it believes the use of cryptocurrencies can contribute. At the same time, he is exploring the possibility of creating a digital currency issued by a central bank.The Reserve Bank of India (RBI) has been extremely vocal about its stance on cryptocurrencies, and in a rather surprising turn of events, it has now made an official statement on the matter. “No change” was the RBI’s official response when asked about its position on cryptocurrencies such as bitcoin, which is a firm no to any sort of crypto-related activity in India.. Read more about private cryptocurrency in india and let us know what you think.
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