RBI wants a total ban on cryptocurrencies, claims a partial ban is not an option

The Reserve Bank of India (RBI) has advised its central board of directors that a total ban on cryptocurrencies would be preferable to a partial ban and stated that a partial ban would not be effective. The central bank reiterated its grave concerns about cryptocurrencies.

RBI supports total crypto ban, claims partial ban won’t work

Governor Shaktikanta Das chaired the 592nd meeting of the Reserve Bank of India’s Board of Directors on Friday. The board of directors is the highest decision-making body at Apex-Bank.

The council discussed current domestic and global economic conditions, as well as emerging challenges and possible solutions. The directors also consider various aspects of Bitcoin and the Central Bank’s digital currency (CBDC).

According to the Economic Times, the RBI said it would prefer a total ban on cryptocurrencies, stressing that a partial ban would not work.

Governor Shaktikanta Das is maintaining his anti-crypto stance as cryptocurrencies are not regulated by central banks, they pose a serious threat to any financial system such as macroeconomic and financial stability.

Cryptocurrency and regulation of the official draft law for digital currency 2021 are to be debated in Lok Sabhaf. The government regulates crypto assets, with the Securities and Exchange Commission of India (SEBI) acting as the primary regulator while banning the use of cryptocurrencies for payments. Rumor has it that the government is still working on the bill and will introduce it during the budget meeting.

Meanwhile, RBI is developing a digital rupee that will be implemented in phases. “We will publish a pilot, whichever is available first,” said RBI Deputy Governor T. Rabi Sankar.