RBI Board Internal Members Not In Favor Of Private Cryptocurrency: Sources

Internal members of the Reserve Bank of India's central board are not in favor of private crypto currencies and majority remain concerned about its impact on financial stability, sources told NDTV. The central bank's board today discussed various aspects related to Central Bank Digital Currency (CBDC) and private cryptocurrencies.

The government plans to regulate the use of cryptocurrency across the country and has listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for consideration in the ongoing Winter Session of Parliament.

It was recently announced in the Parliament that the government had received a proposal from the Reserve Bank of India (RBI) in October 2021 for the amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of 'bank note' to include a currency in the digital form.

The RBI has been examining the use cases and working out a phased implementation strategy for the introduction of Central Bank Digital Currency. However, the central bank has repeatedly expressed its views against cryptocurrencies, saying that it poses serious threats to the macroeconomic and financial stability of the country, and also doubted the number of investors trading on them and their claimed market value.

Shaktikanta Das too had reiterated his views against allowing cryptocurrencies, saying they are serious threats to any financial system since they are unregulated by central banks.

The 592nd meeting of the Central Board of Directors of Reserve Bank of India was held at Lucknow under the chairmanship of RBI Governor Shaktikanta Das, said the RBI in a statement today.

The RBI board also reviewed the current domestic and global economic situation, evolving challenges and remedial measures.

Deputy Governors Mahesh Kumar Jain, Michael Debabrata Patra, M Rajeshwar Rao, and T Rabi Sankar were also present in the meeting.