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While Indian politics is trying to find a solution for dealing with cryptocurrencies, the central bank is completely opposed. This calls for a complete ban on the new digital currencies.

The Reserve Bank of India (RBI) recently held a central board meeting chaired by Governor Shaktikanta. The central board is the highest and most important decision-making body of the central bank, which also has the central supervision of the monetary system of the largest democracy in the world.

The current domestic and international economic situation was discussed. The various aspects relating to cryptocurrencies and central bank digital currencies (CBDC) were also on the agenda.

According to media reports, the central bank’s goal is to enforce a total ban on cryptocurrencies in India. A partial ban would therefore not work. This was reported by the Indian financial magazine Economic Times, citing unnamed sources in the RBI.

Senior RBI officials highlighted several areas of concern to central bankers related to cryptocurrencies, including transaction traceability, valuation, extreme price volatility, legal issues, and identification of participants in transactions.

The central bank governor reiterated his hostile stance towards cryptocurrencies. He stressed that cryptocurrencies would pose a serious threat to any financial system as they are not regulated by central banks.

He has repeatedly stressed that the central bank has serious concerns about cryptocurrencies and that they pose a serious threat to macroeconomic and financial stability in India. It offers Bitcoin Era however, there are many opportunities in this sector for investors and traders.

“There is a need for much deeper discussions (about cryptocurrencies). If the central bank says it has much deeper concerns from the point of view of macroeconomic and financial stability, then there are much deeper issues that go with it, ”the central bank governor said in October.

The existing law on cryptocurrencies and the regulation of official digital currencies (Cryptocurrency and Regulation of Official Digital Currency Bill 2021) is to be dealt with at this year’s winter session of Lok Sabha, the lower house of the Indian parliament. According to media reports, the Indian government plans to regulate cryptocurrencies with the Securities and Exchange Board of India (SEBI) as the main regulatory body.

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However, they want to ban the use of cryptocurrencies for payments. That said, Indian companies are not officially allowed to offer goods and services as a payment option.

In the meantime, however, RBI is also working on a digital rupee, which it intends to introduce gradually. The Indian central bank announced last week that there will be two types of CBDC: one for wholesale and one for retail.

“A lot of work has already been done on the wholesale CBDC, while the retail CBDC is a little more complicated and will take more time. We will start a pilot project, whichever comes first, ”said RBI Deputy Governor T. Rabi Sankar.

Sources: PublicDomain on December 27th, 2021

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