The RBI is examining the effect of the digital rupee on the financial stability in the market.
The Reserve Bank of India (RBI) is examining the impact of the electronic rupee on the nation’s financial stability.
“While we’re focusing on introducing the digital version of the fiat money, RBI can also be analyzing the financial stability implications of introducing CBDC,” Das said on Thursday during his address in the Indian Economic Conclave 2021, based on The Indian Express.
The governor added that the central bank has conveyed its concerns regarding cryptocurrencies to the Indian authorities, which is planning to table a bill in the parliament seeking to ban confidential cryptocurrencies and ease the progression of the RBI’s digital rupee. “The matter is still under examination, and the government will come out with a decision on it,” Das said.
The central bank prohibited commercial banks from providing banking services to cryptocurrency dealers and exchanges in April 2018. However, that ban has been overruled by the Supreme Court of India in March last year, to the relief of exchanges servicing Indian customers.
While both the RBI and the authorities seem biased against personal cryptocurrencies, prominent technocrats like tech-giant Infosys’ non-executive Chairman Nandan Nilekani have stated they believe cryptocurrencies should be considered a distinct asset class.
