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India’s Central Bank Is Constantly Engaged With the Government on Crypto: RBI Chief 

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The Central Bank of India is constantly engaging with the government on crypto issues, the governor of the Reserve Bank of India (RBI) said on Wednesday.

“I can say that on all issues there is constant interaction between the government and the Reserve Bank, including on cryptocurrency issues. We expressed our opinion to the government. Let’s wait for the discussion paper,” RBI chief Shaktikanta Das said, referring to a consultation paper on cryptocurrencies that a Treasury Department official recently said is fairly ready.

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Last month, while briefing the parliamentary group on cryptocurrencies, the RBI said that the adoption of digital assets could partly lead to the dollarization of the economy, which could be detrimental to the country’s sovereign interests. This would seriously jeopardize the RBI’s ability to regulate monetary policy and the flow of money into the economy, the central bank added.

Work on cryptocurrency regulation

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Amid the RBI’s staunch and strong opposition to cryptocurrencies, a senior Indian finance ministry official recently revealed that the government is ready with a consultation paper and it will be published shortly.

“The consultation document is almost ready. We have conducted in-depth research and consulted not only with local stakeholders, but also with multilateral institutions such as the IMF and the World Bank. We hope to be able to finalize and present it soon,” Ajay Seth, secretary for economic affairs at the Ministry of Finance, said on May 31.

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Seth added that the consultation paper would be made available to the general public for comments and suggestions. This has given the impression in relevant circles that the government is working to regulate cryptocurrencies, and this may not be entirely in line with the RBI’s stance on the industry.

Government, RBI on the same page

Referring to the collapse of the cryptocurrency market, the head of the RBI in a recent interview justified the lack of regulation of the asset class and stated that the government’s views on this issue more or less coincide with the position of the central bank.


“We have conveyed our position to the government, and they will make an informed decision. I think that the statements and statements coming from the government are more or less the same. They are also equally concerned,” the head of the RBI said in an interview.

CBDC plans in a regulatory void

RBI plans to launch its CBDC in the current fiscal year. In an IMF-hosted webinar, RBI Deputy Governor T. Rabi Sankar said on June 2 that CBDCs could kill cryptocurrencies, including stablecoins.

However, experts believe that digital versions of national fiat currencies cannot function optimally in a regulatory vacuum, as some of them may also interact with cryptocurrencies in their jurisdictions.

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