RBI In Favour Of Complete Ban On Cryptocurrencies, Says Report

The cryptocurrency Bill is unlikely to be presented in the winter session of Parliament as the Centre has yet to finalise details of the Bill, according to a report

The RBI has been working towards a phased implementation strategy for central bank digital currency. Image: AFP

New Delhi: The Reserve Bank of India (RBI) wants a complete ban on cryptocurrencies, according to a report by Economics Times.

The RBI on Friday discussed various issues related to the central bank digital currency (CBDC) and private cryptocurrencies in its central board meeting in Lucknow. The central bank has already conveyed this message to its central board directors.

The 592nd meeting of the central board of directors was chaired by Governor Shaktikanta Das.

The RBI has been working towards a phased implementation strategy for CBDC, however, it had on several occasions in the past, expressed reservations with private crypto currencies.

“Cryptocurrencies are a serious concern to the RBI from a macroeconomic and financial stability standpoint,” Das said previously. “As the central banker, we have serious concerns about it and we have flagged it many times.”

However, some board members sought a balanced view on these digital assets, taking into account developments in the technological space and larger implications for the financial sector, according to the report.

The central government had listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for introduction in the Lok Sabha in the winter session of Parliament. It had earlier been listed for the budget session as well but could not be introduced as the government decided to rework it.

Meanwhile, the cryptocurrency Bill is unlikely to be presented in the winter session of Parliament as the Centre has yet to finalise details of the Bill, according to a report in Bloomberg. The schedule for the last week of Parliament dropped the cryptocurrency Bill from the list of business put on website.

Reports suggested that Prime Minister Narendra Modi is take a final call on shape of the proposed cryptocurrency Bill. Modi already held several round of talks on the matter.