The Reserve Bank of India (RBI) has informed the Central Board that it supports a complete ban on cryptocurrencies, sources said at a Central Bank board meeting on Friday.
RBI gave a detailed presentation to the Board highlighting the serious concerns regarding macroeconomic and financial stability and exchange management. The RBI informed the Board of its position on the matter. The central bank has also highlighted the challenge of controlling assets arising abroad.
Referring to concerns about the anonymity of transactions, the RBI said these were available for trading in foreign exchange.
“As a central banker, we have serious concerns about this and that we have already flagged it many times.”
The second person said that due to developments in the technology sector and major implications for the economy, some board members want a balanced perspective on these digital assets.
The board also discussed various issues related to central bank digital currency and private cryptocurrencies, the RBI said in a statement on Friday.
The government has listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 to be tabled in the Lok Sabha during the winter session of Parliament. It was listed before the budget session but could not be submitted as the government had decided to redesign it.
The current proposed bill seeks to create a framework for creating the official digital currency to be issued by the RBI. Its aim is to ban private cryptocurrencies in India while allowing some exceptions to promote the basic technology of cryptocurrency and its uses.
Prime Minister Narendra Modi will take the final decision on the proposed framework outline for cryptocurrencies. It has been reported earlier this week that the bill was unlikely to be introduced in this session as the government intends to hold wide-ranging consultations.
The Prime Minister has repeatedly discussed this issue previously.
In July 2019, a high-level government panel imposed a complete ban on all forms of private cryptocurrencies. It had suggested a fine of up to Rs 25 crore and jailed for 10 years for handling the cryptocurrency.