The central bank of India RBI [Reserve Bank Of India] has expressed that cryptocurrencies presently don’t pose any threat to the financial stability in its recent ‘financial report‘:
The document named “Report on Trend and Progress of Banking in India 2017-18” reads:
“Crypto-assets don’t pose any risks to global monetary stability presently. The market continues to evolve speedily, however, and this initial assessment might change if crypto-assets were to become additionally more widely used or interconnected with the core of the regulated financial set-up.”
RBI quoted a conclusion drawn from a recent report by the FSB [Financial Stability Board] — a global agency consisting of banking and monetary establishments from different countries, together with India. RBI itself is a member of the FSB, at the side of country’s Securities and Exchange Board and Ministry of Finance.
In its study “Crypto-asset markets: Potential channels for future financial stability implications,” printed earlier in Oct., the FSB claimed that bankers see no vital danger within the existence of cryptocurrencies, as their total market cap by that point had barely reached 2% of the world’s worth of gold. However, the board urged watchdogs to keep an eye fixed on the digital coin markets, given their rapid growth.
RBI reiterated this stance in its earlier report revealed in Dec., stating that сryptocurrencies require “consistent monitoring,” seeing their rapid expansion in recent years.
The legal ‘framework‘ for cryptocurrencies in India however for now, still remains unclear as RBI formally stopped all banks from addressing cryptocurrencies in April. The de facto prohibition came into effect in June, while the Supreme Court’s hearings on the case — initiated by native crypto companies — were repeatedly deferred. At the same time, an Indian Govt. panel is reportedly considering a ‘complete ban‘ on crypto’s.
Initially, RBI had thought of launching its own digital currency, named “Laxmi.” However, in January, the bank gave up its idea of constructing a stablecoin tied to the rupee, stating that it’s too early to even rely on it.
Yesterday, on 3rd Jan., the police of the Indian state of J&K [Jammu and Kashmir] ‘issued an announcement‘, warning the general public against investing in cryptocurrencies due to the “heightened risk’s” related to them. The authorities conjointly added that digital currencies aren’t regulated by the Indian government.