The Reserve Bank of India has petitioned the board to put an outright ban on cryptocurrency
According to sources familiar with the proceedings at the Reserve Bank of India’s (RBI) board meeting on Friday, December 17, the RBI notified its central board that it favours a blanket ban on cryptocurrencies.
According to one person who spoke to The Economic Times, India’s central bank made a long presentation to the board, noting “severe worries” about macroeconomic and financial stability, as well as exchange management.
According to the source, “the board was informed of the RBI’s position on the topic.” Additionally, the central bank stressed the complexity of regulating intangible assets with international origins. RBI authorities have said that these are available for foreign currency trading, citing concerns over transaction confidentiality, according to another source.
According to a second source, several board members want a more balanced view of these digital assets, one that takes into account technological improvements and the financial sector’s larger implications.
The Reserve Bank of India issued a statement on Friday stating that: “The board also examined a variety of issues concerning the Central Bank Digital Currency and private cryptocurrencies.”
Notably, the government has put the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, on its list of laws that would be submitted in the Lok Sabha during the winter session of parliament.
Originally slated for introduction during the budget session, the measure was unable to be introduced due to the administration’s decision to alter it.
A bill to provide a framework for digital currencies
The proposed bill seeks to provide a framework for the development of an official digital currency to be issued by the Reserve Bank of India. It aims to prohibit private cryptocurrencies in India while allowing for specified exclusions in order to promote crypto’s underlying technology and uses.
Finally, Prime Minister Narendra Modi will approve the parameters of the proposed framework for cryptocurrencies, and he will make the final decision.
However, the law is unlikely to be introduced during the current parliamentary session, since the government wants to undertake more consultations ahead of time, despite the Prime Minister had previously had many rounds of conversations on the matter.