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0X MN


RBI has major concerns over cryptocurrency

By VARINDIA - 2021-06-05

RBI has major concerns over cryptocurrency

The Reserve Bank of India reiterated its concerns over cryptocurrencies, clarifying its stance on digital assets just days after the regulator told banks to set aside a 2018 ban on trading. There is no change in RBI’s position," RBI Governor Shaktikanta Das told reporters at an online press conference after the monetary policy statement.

 

“We have major concerns around cryptocurrency, which we have conveyed to the government. It had barred entities regulated by it from dealing in such instruments. However, the Supreme Court in early 2020 struck down the circular.

 

Das said a revised notification to financial institutions on Monday was necessitated because some banks were still referring to the old circular set aside by the apex court and this was an attempt to set the record straight.The RBI had on Monday asked banks, NBFCs, and payment system providers not to refer to its earlier 2018 circular in their communications to customers.

 

Following Monday's circular, some stakeholders in the cryptocurrency trade had welcomed it more as a vindication. Some of the cryptocurrencies have seen a massive dip in their per-unit trading prices lately, leading to erosion of investor wealth. Some investors have been looking at cryptocurrencies as an attractive investment class.


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