Private crypto coins undermine financial stability: RBI note
“Furthermore, the broader rise of cryptocurrencies is likely to reduce the power of monetary authorities to determine and administer the monetary policy and monetary system of the country, This could pose a serious challenge to the stability of the country’s financial system.
The central bank has consistently expressed its opposition to private cryptocurrencies and the Governor of RBI Shaktikanta Das said in June that cryptocurrencies are a clear danger and that anything that derives value based on trust, without any underlying value is just speculation under a complicated name. .
Authorities are working on measures to regulate cryptocurrencies but the view is that global cooperation is needed to regulate these entities as measures taken by a single country will not be enough to regulate these entities. adjust them. The issue could come up during next year’s G20 discussions under the chair of India.
“The inherent design of cryptocurrencies towards bypassing established and regulated intermediaries and control arrangements plays a vital role in ensuring the integrity and stability of the financial ecosystem. major and currency,” the RBI note published on Friday said.
It says CBDC is the next step in the evolution of sovereign currency. Referred to as e (digital .) Rupees) in India it’s basically no different from bank notes, but in digital form it can be easier, faster and cheaper. It also has all the transactional benefits of other digital currencies, according to the central bank.
RBI will soon begin rolling out limited testing e for specific uses.