‘Far Deeper Issues': RBI Governor Shaktikanta Das Reiterates Concerns Over Cryptocurrencies

The RBI Governor said that there are far deeper issues that need deeper discussion when RBI says that cryptocurrencies are a serious concern.

RBI Governor Shaktikanta Das (File Photo)

New Delhi: The Governor of the Reserve Bank of India, Shaktikanta Das has again expressed his concern over cryptocurrencies, reported PTI. Speaking at the SBI Banking and Economics Conclave on Tuesday, he said that there are “far deeper issues involved in virtual currencies that could pose a threat to the country’s economic and financial stability." 

He further said there are far deeper issues that need deeper discussion when RBI says that cryptocurrencies are a serious concern. "When the RBI, after due internal deliberation, says that there are serious concerns on macroeconomic and financial stability, there are deeper issues, which need much deeper discussions and much more well-informed discussions,” the Governor said. 

This statement came just a few days after the Prime Minister chaired a meeting regarding the cryptocurrencies over misleading claims of huge returns on cryptocurrency investments. 

Prior to this, a week ago in an event, Das had already said that the digital virtual currencies pose serious threats to the macroeconomic and financial stability of the country. He also raised his doubts over the reported numbers of investors owning crypto assets and also the claimed market value of those investments. 

The Parliamentary Standing Committee on Finance had held a discussion with various stakeholders on the pros and cons of cryptocurrencies on Monday. Several members in that discussion were of the view that the crypto exchanges should be regulated rather than outrightly banning them, the PTI had reported. 

The RBI Governor said that he was not aware of what the Standing Committee discussed and deliberated in their discussion on cryptocurrencies. He doubted the current trading numbers in cryptocurrencies and said that people are being lured to open accounts by offering credit. 

"We have received a lot of feedback that credit has been provided to open accounts and various other kinds of incentives are being provided to open accounts, but the total account balance is just about Rs 500, Rs 1,000 or Rs 2,000, and that covers about 70 to 80% of the accounts," the Governor said. 

As per the PTI report, the government may introduce a bill in the parliament on cryptocurrencies during the winter session which would commence on November 29.