The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, reiterated the central bank’s stance on cryptocurrency during the Mint BFSI Summit on Thursday. He stated that the RBI’s position on cryptocurrency remains unchanged and venturing into this realm would pose significant risks. He also compared it to the Tulip mania, stating that the world and emerging markets cannot handle a similar situation.
This statement was made during the Mint BFSI Summit and Awards, which is currently live. Last year, Governor Das also maintained that the RBI’s position on banning crypto assets has not changed. He has consistently viewed cryptocurrencies as a serious threat to financial stability, especially for emerging markets.
In October 2023, during the Mint BFSI Summit, Governor Das questioned the feasibility of regulating cryptocurrencies and referred to a recent IMF paper that acknowledged the need for additional restrictions on this industry.
During the summit, Governor Das commended private companies for their contributions in making India a global leader in the UPI payment system. He also mentioned that the digital lending guidelines have been well received and emphasized the need for sustainable growth in the fintech sector.
In light of the recent surge in fraudulent lending apps, the RBI is collaborating with the government and concerned ministries to take appropriate measures against suspicious applications. Governor Das also highlighted the challenges posed by cyber security and the efforts being made to strengthen India’s banking and financial systems.
During the summit, Governor Das also mentioned the RBI’s plans for a Central Bank Digital Currency (CBDC). He stated that the wholesale CBDC is being expanded and the potential for programmable features in retail CBDC is being explored, which would allow senders to specify the intended use of the funds.
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