The Reserve Bank of India, that's the RBI, is taking a position against cryptocurrencies in this mid-section of the market crash. RBI is trying to warn the investors and the government as well in against crypto.
As per the governor of RBI, crypto does not occupy any primary value. Apart from this, there are several questions arousing regarding how to control crypto. He also noted that it will undermine the monetary, financial, and macro-economic stability of India.
Previously also the top authorities of RBI officials told a parliamentary panel that crypto can lead to the ‘dollarisation’ (as cryptos are dollar-denominated) of a part of India’s economy.
All cryptos are issued by foreign private entities and these tokens can hurt the country’s sovereign interest.
RBI has now transported its position to the government and they will handle the considered call. Das added that the government is also concerned about cryptos.
The Finance Minister, Nirmala Sitharaman said that India would not hurry into any final decision over cryptocurrencies and other related virtual digital assets. The government wants to make a knowledgeable decision.
After the global crypto exchange - Coinbase had to sacrifice its India existing intentions. The CEO and co-founder of Coinbase Brian Armstrong have cited the “informal pressure” from RBI for the exchange restricting payments through the Unified Payments Interface (UPI) in India.
With regardless to regulatory hurdles, and lack of clarity, Binance is looking for an ‘ideal point’ for its India launch.
“We have been cautioning against crypto and look at what has happened to the crypto market now. Had we been regulating it already, then people would have raised questions about what happened to regulations,” RBI governor Shaktikanta Das mentioned on the CNBC platform.