RBI Governor Continues To Maintain Strong Stance Against Crypto, Says They ‘Pose Huge Risks To Financial Stability’

Das had earlier said that the underlying value of cryptocurrency is “nothing.” 

Reserve Bank of India (RBI) Governor Shaktikanta Das has been a strong opposer of cryptocurrencies and related services. At an event in Mumbai, the central bank chief said that “they pose huge risks to financial stability.” Das added that the RBI will wait for the government consultation paper on cryptocurrencies to come out. Das made a similar statement last month when he said that cryptocurrencies will “seriously undermine the monetary, financial, and macroeconomic stability of India.” The RBI is indeed going ahead with its plan to launch a Central Bank Digital Currency (CBDC), as confirmed by RBI Deputy Governor T Rabi Shankar on Wednesday.

Das said, "We have already conveyed our stance [on crypto] to the government. They pose huge risks to financial stability." He added that the RBI will "soon" come out with guidelines on digital lending. 

As mentioned, this is not the first time that he has spoken out against crypto. Commenting on the recent crypto market crash, Das said during an interview with CNBC TV18, “We have been cautioning against crypto and look at what has happened to the crypto market now.”

ALSO ON ABP LIVE: RBI Governor Warns Crypto Will 'Seriously Undermine' Financial Stability Of India

“Had we been regulating it already, then people would have raised questions about what happened to regulations,” Das added during the interview. "There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial, and macroeconomic stability of India." 

Das had said that the underlying value of cryptocurrency is “nothing.” 

ALSO ON ABP LIVE: CBDT To Release Crypto Tax FAQ Before July 1 To Provide More ‘Clarity’

The Central Board of Direct Taxes (CBDT) will also release a list of frequently asked questions (FAQ) on cryptocurrency tax before July 1. During an event hosted by the Income Tax Department as part of the Ministry of Finance’s ‘Iconic Week Celebrations,’ CBDT chairperson Sangeeta Singh said, “We are working on the FAQs for clarity on cryptos, and we will release it before July 1.” While cryptocurrencies are still unregulated in India, gains from crypto assets face a tax of 30 percent.

Meanwhile, RBI Deputy Governor T Rabi Shankar confirmed during a press conference following the central bank's June Monetary Policy Committee (MPC) meeting that the CBDC will be introduced in 2022, however the “process of introduction will be gradual” to ensure smooth implementation.