Cryptocurrency is a Threat to Economy, RBI Governor's Warning
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Cryptocurrency a Threat to Financial and Macroeconomics Stability: RBI Governor
After announcing the decision of the Monetary Policy Committee on Thursday, Reserve Bank of India (RBI) Governor Shaktikanta Das reiterated his stand on cryptocurrencies. He called cryptocurrencies a 'threat to our financial and macroeconomic stability.
RBI's clear stand on cryptocurrencies
Talking to the media, Das said, "As far as cryptocurrencies are concerned, the RBI's stand is very clear. Private cryptocurrencies are a major threat to our financial and macroeconomic stability. Das further said that he feels that he must inform investors that, those investing in cryptocurrencies should keep in mind that they are investing at their own risk. They should note that such assets have no basis.
Digital Rupee will be like physical rupee
Meanwhile, the central bank also talked about the digital rupee, which was announced by Finance Minister Nirmala Sitharaman in her Budget 2022-23 speech on February 1. RBI Deputy Governor T Rabi Shankar said that the digital rupee will be just like a normal, physical rupee.
How is Digital Rupee different from Cryptocurrency?
Cryptocurrencies
The Deputy Governor said, 'Just like a normal rupee is kept in your purse or pocket, the digital rupee will be kept in your cell phone device. The difference between Digital Rupee and Private Cryptocurrency is that Digital Rupee will be issued by RBI.
On the rollout of the digital currency, Das replied that he could not give any timeline for a CBDC. But he said that whatever we are doing, we are doing it very carefully. We have to take into account the risks like cyber security and counterfeiting. So, we are proceeding with caution and cannot give a timeline. The Deputy Governor further mentioned that once the proposed law is amended, we can proceed with our proof of concept and pilot projects.