The Reserve Bank of India (RBI) is examining the impact of the digital rupee on the country’s financial stability.
“While we are working on introducing the digital version of the fiat currency, RBI is also assessing the financial stability implications of introducing CBDC,” Das said on Thursday during his speech at the Indian Economic Conclave 2021, according to The Indian Express.
The governor added that the central bank has conveyed its concerns regarding cryptocurrencies to the Indian government, which is planning to table a bill in the parliament seeking to ban private cryptocurrencies and facilitate the development 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 traders and exchanges in April 2018. However, that ban was overruled by the Supreme Court of India in March last year, to the relief of exchanges servicing Indian clients.
While both the RBI and the government appear biased against private cryptocurrencies, prominent technocrats such as tech-giant Infosys’ non-executive Chairman Nandan Nilekani have said they believe cryptocurrencies should be considered a separate asset class.