Explorer

Private Cryptocurrencies Pose Immediate Risks To Customers, Prone To Frauds: RBI FSR Report

The RBI observations assume significance in the context of the ongoing debates on whether India should ban private cryptocurrencies or not

New Delhi: The Reserve Bank of India (RBI) in its Financial Stability Report (FSR) has said that private cryptocurrencies pose immediate risks to customer protection and anti-money laundering, and combatting the financing of terrorism as digital currencies are extremely volatile given their highly speculative nature.

According to the report, “They are also prone to frauds and to extreme price volatility, given their highly speculative nature. Longer-term concerns relate to capital flow management, financial and macro-economic stability, monetary policy transmission and currency substitution.”

The RBI observations assume significance in the context of the ongoing debates on whether India should ban private cryptocurrencies or not.

The central bank, time and again, has highlighted the deeper macroeconomic concerns posed by the unregulated private cryptocurrency market in India. However, the RBI is open to the idea of introducing a Central Bank Digital Currency (CBDC). 

The central government is in the process of framing a national law to regulate the private cryptocurrency market.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was included in the Lok Sabha Bulletin-Part II for introduction in the Winter Session of Parliament that concluded on December 22.

According to the bulletin, the Bill, which could not be introduced, sought to create a facilitative guidelines for the creation of the official digital currency to be issued by the RBI.

It also sought to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.

The total market capitalisation of the top 100 cryptocurrencies has reached $2.8 trillion.

ALSO READ | RBI Financial Stability Report: Gross NPAs Of Banks May Rise To 9.5% By September 2022 In Worst-Case Scenario

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headline

Kejriwal To Stay Delhi CM From Jail As High Court Finds 'No Legal Bar,' Ball In LG's Court Now
Kejriwal To Stay Delhi CM From Jail As High Court Finds 'No Legal Bar,' Ball In LG's Court Now
'No Court Has Proved Me Guilty': Arvind Kejriwal Thanks ED Officers, Addresses Court Personally
'No Court Has Proved Me Guilty': Arvind Kejriwal Thanks ED Officers, Addresses Court Personally
Another Setback For Congress As Delhi HC Rejects Plea Against Income Tax Case
Another Setback For Congress As Delhi HC Rejects Plea Against Income Tax Case
ED Raids Relative Of Arvind Kejriwal's Wife In Old FEMA Case
ED Raids Relative Of Arvind Kejriwal's Wife In Old FEMA Case
Advertisement
for smartphones
and tablets

Videos

Bihar Lok Sabha Polls 2024: ABP Exclusive With Papu Yadav, MP No Longer Contesting From PurniaVarun Gandhi Pens Emotional Letter To Pilibhit After Being Denied, Says 'Mai Aapka Hu Aur Rahunga'Delhi Excise Policy Case: With CM Arvind Kejriwal's Arrest, Who Will Run The State | Watch ReportLok Sabha Elections 2024: 'BJP Just Wants To Break The Aam Aadmi Party' says Saurabh Bhardwaj

Photogallery

Embed widget