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RBI To Wait For Crypto Government Paper: Central Bank Governor

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RBI To Wait For Crypto Government Paper: Central Bank Governor thumbnail
  • RBI will wait for the government’s consultation paper on crypto, said governor Das.
  • The statement was made during a press conference post-MCP meeting.
  • RBI aims to introduce CBDT by the end of this financial year.

Shaktikanta Das, the governor of the Reserve Bank of India (RBI), said at a press conference on Wednesday that the central bank has submitted its views to the government regarding the consultation paper on cryptocurrencies and will wait for it to come.

Das made the statement while addressing the media after the post-Monetary Policy Committee (MPC) meeting, wherein the committee introduced an online gaming policy; surged the repo rate by 50 basis points; reassured the FY23 plan of introducing the Central Board of Direct Taxes (CBDT) as indicated in February’s Union Budget announcement; and discussed the implication of e-mandates.

When questioned about the consultation paper that the Indian government is preparing, he responded:

There is constant engagement between RBI and the Government on cryptocurrencies. We have given our views to the Government. Let us wait for the consultation paper to come out.

Das has always expressed his skepticism over crypto, citing its volatility. Earlier this year, Das mentioned that private cryptocurrencies threaten microeconomic and financial stability as well as undermine its ability to deal with challenges in these two fortes.

Meanwhile, last week India’s Economic Affairs Secretary Ajay Seth stated that Finance Minister Nirmala Sitharaman has almost completed work on readying the consultation papers and will be submitting it soon.

He further added that India is consulting other countries regarding global crypto regulation, and before enforcing any kind of regulation, India would examine the regulations implemented in other nations.

With investors and experts from the crypto industry holding high hopes for the consultation paper, this paper is likely to cover the regulatory framework for private cryptos in the nation, although many RBI officials oppose these virtual currencies.

Moreover, the anticipation around this consultation paper is accentuated since India is home to the second-largest number of crypto users globally (as of 2021). The crypto market in India has allegedly registered a 641% growth between 2020-2021.

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