RBI's Views Might Have Delayed Crypto Bill says Deputy Governor Michael Patra.
RBI is not in a favor to legalize the cryptocurrency use in the country as it do not has any under value at all.
RBI is working very slowly and generally it is expected that it will make calibrated moves in the direction.
Highlights
- Government is intending to introduce a crypto bill to regulate the crypto sector.
- Central Bank is in the favor to ban the cryptocurrency.
- The governor of RBI also raise the concern over the privacy on CBDC front.
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The deputy governor of RBI Michael Patra urged the statement related to the unauthorized currency known as cryptocurrency as central bank view about cryptocurrencies might have delayed the government’s proposed legislation on crypto assets.
In the budget session of 2022, Nirmala Sitharaman has said the introduction of a unique currency known as Central Bank’s Digital Currency (CBDC) and it will be introduced in the financial year 2023. The deputy governor said India will proceed slowly in the matter because it involves the matter of privacy and its impact on monetary policy formulation and energy intensity.
Indian Government had the plan to launch a cryptocurrency bill similar to Bitcoin in the winter session of Parliament happened in November-December 2021. Later on it was not introduced.
Deputy Governor said in an event “RBI’s view is quite slow on crypto. I think It is one of the views that has actually delayed a bill on that subject but we will engage in a fair debate on that subject and will look at all sides of the debate,” said in Pune International Centre.
Patra said that such currency hold no underlying value at all and has also called them a threat to financial stability.
During the event he also said that such an instrument exist in the whole sell front but it is retail where the work is required.
He said
“I think we will proceed very gradually, we will cross the river by feeling the pebbles. There are issues of privacy that are involved, there are issues of monetary policy transmission that are involved. There is also an issue of energy intensity of the whole process if it is on a certain kind of technology,” Patra said.
RBI is making a very slothful step towards this and will make calibrated moves in the direction, he noted in the even speech.
