New Delhi: Reserve Bank of India Governor Shaktikanta Das Thursday said that the central bank has flagged major concerns over cryptocurrency to the government.
Speaking at the Times Network India Economic Conclave, the Governor said that digital currency is one thing and the cryptocurrencies which are being traded in the market is something else.
The statement from the central bank governor gains significance as the government is set to come up with a Bill on cryptocurrency wherein it is likely to ban all such cryptocurrencies.
“Both RBI and government are committed to financial stability. We have flagged certain concerns around cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government, and it is still under examination in the government and government will come out with a decision or sooner than later,” he said.
Das was of the view that there is no difference of opinion between the RBI and the Centre on cryptocurrency.
On the forex market and the Indian rupee, he said that it is a dynamic situation, and there are two objectives of the RBI’s forex intervention — to prevent excessive volatility of the exchange rate of Indian rupee against the dollar, and the second theme is that emerging market economics need to build up their own buffers.
Emphasising that emerging market economies should build up their forex buffers, Das said that the recent framework of International Monetary Fund also recognises that forex intervention has become necessary for emerging market economies to deal with volatile situations and to deal with adverse situations.
“We are ready always to keep it (forex rate) stable because certainty and stability is good is good for investors. It is good for importers, it is good for exporters, in fact it is good for all stakeholders in the economics.”
IANS