Indian Central Bank Governor says RBI and Government Agree on Crypto Approach

More confusion sparks within the Indian cryptocurrency industry as regulators fail to provide clarity regarding the regulatory future of the market in the nation. Recently the Reserve Bank of India’s Governor Shaktikanta Das has expressed concerns regarding the risks of cryptocurrencies, adding that the central bank and the finance ministry are of one the same page.

Meanwhile, the nation’s finance minister has said the regulators won’t be completely shutting off crypto, and would rather take a calibrated approach regarding crypto regulations.

Speaking at the India Economic Conclave organized by The Times Network on Thursday, Das answered questions regarding the digital rupee and upcoming digital currency legislation. The RBI governor was also asked whether the central bank was of the same opinion as the Finance ministry. The central bank voiced “major concerns” about crypto, contrary to Finance minister Nirmala Sitharaman’s statement.

“I do not think the finance ministry or the Reserve Bank has given any different points of view … I have reasons to believe that the government is in agreement,” he said, adding that “The central bank digital currency is one thing, while the cryptocurrencies which are being traded in the market are something else.”

Das went on to stress that the regulators “are committed to financial stability,” elaborating:

“We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government.”

“It is still under examination and the government will come out with a decision sooner than later,” Das concluded.

Confusion

Comments from the governor put the crypto community back at square one with everyone concerned about the future of the industry. The nation’s Finance minister had noted that the primary goal for lawmakers was to focus on the central bank digital currency, but she had also said that there would be a “window” for the crypto industry.

“From our side, we are very clear that we are not shutting all options off. We will allow certain windows for people use, so that experiments on the blockchain, Bitcoins or cryptocurrency […] and fintech, which depend on such experiments, will have that window available for them,” she said.

As of now, the industry remains clouded with doubt and confusion and as a result, new investors are hesitant to invest. However, it must be noted that the market for crypto has grown significantly over the past years.

Contributed by The Daily Chain.