RBI backed CBDC likely to feature in crypto bill

The proposal for central bank digital currency (CBDC) upheld by the nation’s banking regulator might be included for the upcoming bill to regulate cryptocurrency, a top government official told ET.

Naming the Center’s bill as a response to the national bank’s concerns about macro-economic stability the official in the know of discussions on the forthcoming enactment said the “government’s response isn’t to ban cryptocurrencies but instead to give digital currency via the RBI.”

The Bill, scheduled to come up in the winter session of year meeting of Parliament starting on Monday, plans to likewise guarantee that the Reserve Bank of India (RBI) doesn’t lose control on the country’s monetary economics while minimizing speculative betting around cryptos, the source said.

“Unregulated cryptocurrencies can undermine the macro economy and make huge speculative bubbles. To that extent, the RBI is correct,” the individual added.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, due to be presented in the following meeting of Parliament, has set off an industry-wide stir, as the Lok Sabha site in its instructions on the enactment expresses that it “looks to prohibit all private cryptocurrencies in India” however takes into account “certain exceptions to promote the underlying technology and its uses”.