Shaktikanta Das, Governor of Reserve Bank of India (RBI), spoke about cryptocurrency at a press briefing on Saturday after the G20 meeting of central bank governors and finance ministers in Bengaluru. According to India’s state-owned media outlet News On Air
Das stated to the media that crypto currencies and assets pose a major risk to financial stability and monetary systems as well as cyber security.
Das also mentioned that G20 delegates were interested in pilot projects for central bank digital currency (CBDC). This was noted in the publication. The pilot projects of India’s central bank for digital rupees were launched in November, and December respectively last year.
Indian Finance Minister Nirmala Sitharaman stated that there is almost consensus that currency is anything that isn’t backed by the central banks. This is the position India has held for a long time.
India requested the International Monetary Fund and the Financial Stability Board to create a joint paper about crypto in order to assist with the formulation of ‘comprehensive crypto policies. Kristalina Georgieva, IMF’s Managing Director, has demanded more crypto regulation and stressed that banning should not be ruled out. The IMF executive Board has published guidelines for creating effective crypto policies.
The RBI repeatedly stated that cryptocurrency that is not backed by the central banks should be prohibited. The Indian finance minister has previously stated that regulating or banning cryptocurrency should only be done in cooperation with other countries.
Janet Yellen, U.S. Treasury Secretary, stated that while the U.S. does not recommend outright banning crypto activities, it stresses that it is ‘critical to establish a strong regulatory environment for crypto.
In the meantime, over 200 delegates met recently and reached an agreement regarding the timely implementation standards for crypto by the Financial Action Task Force.