India’s Central Bank Chief Airs ‘Major Concerns’ About Crypto Risks

Reserve Bank of India Governor Shaktikanta Das said he expects the government to "take a call" on cryptocurrencies.

Feb 24, 2021 at 9:51 a.m. UTC
Updated Sep 14, 2021 at 12:16 p.m. UTC

The Reserve Bank of India (RBI) has expressed “major concerns” about cryptocurrencies as the Indian government reportedly plans an outright ban on the use of such assets except for an official digital rupee.

RBI Governor Shaktikanta Das said in an interview with CNBC-TV18 that, although there are benefits around using blockchain technology, the central bank is worried about the risk cryptocurrencies pose to financial stability.

The issue "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,” said Das.

However, the RBI is working to launch its own digital currency soon which is a “work in progress, a lot of work is going on both, in the technology side as well as the procedural side,” according to the governor.

Das would not commit to a date for a launch, though he said the RBI is indeed planning for that event.

In related news, a number of banks in India have been calling customers in to ask questions about any crypto-related transactions, according to an Economic Times report. If they fail to do so, their accounts may be frozen.

As CoinDesk reported, the Indian government said it would introduce a bill that would ban "private cryptocurrencies." The details are still unknown, however, leaving India's burgeoning crypto industry in limbo for now.

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