Crypto Opinions & News India's Central Bank Calls for Cryptocurrency Ban

[upnorth]

Content source

https://www.theregister.com/2022/07/19/india_cryptocurrency_ban/

India's Reserve Bank (RBI) wants cryptocurrency banned, according to a statement made in parliament on Monday.

The Bank's position emerged in an answer to a question on notice, delivered on Monday by finance minister Nirmala Sitharaman. "In view of the concerns expressed by RBI on the destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country, RBI has recommended for framing of legislation on this sector. RBI is of the view that cryptocurrencies should be prohibited," Sitharaman declared. [PDF] The Bank has previously shared its dislike for cryptocurrencies, labelling them a "clear danger" and "designed to bypass the financial system and all its controls, including Anti Money Laundering (AML)/Combatting the Financial Terrorism (CFT) and Know Your Customer (KYC) regulations."

According to Sitharaman, RBI does not view cryptocurrencies as currencies at all, as they are not issued by the central bank or government. "The value of fiat currencies is anchored by monetary policy and their status as legal tender, however the value of cryptocurrencies rests solely on the speculations and expectations of high returns that are not well anchored, so it will have a destabilizing effect on the monetary and fiscal stability of a country," explained the minister. Also of concern is the borderless nature of cryptocurrencies. Any legislation, regulation or banning of the alterna-cash would require "significant international collaboration" on both risk evaluations and the establishment of standards.

Such global efforts are underway. International financial body the Financial Stability Board (FSB) last week announced its intent to develop cryptocurrency rules. The FSB, of which India is a member, said it "will report to the G20 Finance Ministers and Central Bank Governors in October on regulatory and supervisory approaches to stablecoins and other crypto-assets."

India's central bank calls for cryptocurrency ban

It doesn't look, smell, or behave like money, but it's far more dangerous, says finance minister

www.theregister.com

 

[Brahman]

A lot of fraud is going on in India, luring uninformed investors to fake crypto wallets and most of the fake providers are offering pyramid investment schemes. If you have a 1500$ you can create a crypto and a wallet in India that's the sorry situation currently going on. So I feel a requirement of some level of control over the matter ASAP.