RBI board discusses private cryptocurrencies

The Central Board of Reserve Bank of India discussed different aspects related to Central Bank digital currency and private cryptocurrencies. The government has proposed to bring in legislation on cryptocurrencies.

It has listed cryptocurrency and regulation of official digital currency bill, 2021, for consideration in the ongoing session of parliament.

The RBI in a statement said the 592nd meeting of the Central Board of Directors of Reserve bank of India was held at Lucknow under the chairmanship of Governor Shaktikanta Das.

“The board also discussed different aspects relating to Central Bank Digital Currency and Private Crypto Currencies,” it said.

Parliament was recently informed that the government had received a proposal from the RBI in October 2021, for the amendment to the RBI act, 1934 to enhance the scope of the definition of bank note to include currency in digital form.

The RBI has been examining use cases and working out a strategy for the introduction of Central Bank Digital Currency with less disruption. CBDC is introduced by Central Bank.

The Central bank has expressed its views against cryptocurrencies, saying they pose serious threats to the macro-economic and financial stability of the nation, and also doubted the number of investors trading on them and their claimed market value.