Shaktikanta Das, governor of the Reserve Bank of India, said earlier today that the central bank has voiced concerns around the viability of cryptocurrencies with the Indian government. Speaking to CNBC-TV18, Das said, “We have certain major concerns about cryptocurrency. We have communicated them to the government. It is under consideration in the government and I do expect and I think sooner or later the government will take a call and if required the Parliament also will consider and decide.”
The concerns raised by Das comes at a time when reports have widely claimed that the Indian government is mulling a ban on all trading and holding of private cryptocurrencies, but remains open to the possibility of a centre-backed digital currency that will make use of blockchain technology but avoid the frailties of private crypto-coins. The main issue for RBI with these cryptocurrencies is linked to the financial stability of the non-fiat currencies, Das said.
However, Das underlined that while he has raised concerns about cryptocurrencies, the RBI remains open about using blockchain as the central, underlying technology. “I also want to make it very clear that blockchain technology is different. The benefits of it have to be exploited, that is another thing, but on crypto, we have major concerns from the financial stability angle,” he said to CNBC-TV18.
Alongside India, governments of other nations have also raised concerns around the volatility of cryptocurrencies due to them being held by private entities, leading to mass fluctuation of prices and minimal stability. The Indian government, on this note, is expected to set up a high-level inter-ministerial committee that will take a call on the future of cryptocurrencies in India. Inputs relayed to the government by RBI governor Das is also expected to play its role in the overall decision.