RBI Admits It Can’t Stop The Crypto Revolution – Introduces Guidelines To Regulate Private Cryptocurrencies

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The Reserve Bank of India (RBI) has been vocal about its negative stance on cryptocurrencies. It was revealed that the organization has come out with guidelines for regulating private cryptocurrencies. These guidelines are to ensure that all users have protection from potential risks and frauds while dealing with such currencies.

Regulating private cryptocurrencies has become a focal point of recent attention, with the central bank warning the government not to allow them even as the latter introduces legislation to regulate them.

During its 592nd meeting, the Reserve Bank of India (RBI)’s board of directors discussed central bank digital currencies (CBDCs) and cryptocurrencies, among other topics.

Regulating private cryptocurrencies has become a focal point of recent attention, with the central bank warning the government not to allow them even as the latter introduces legislation to regulate them.

CBDCs are now being viewed positively by the RBI and two types of CBDCs are being considered. T Rabi Sankar, deputy governor of the central bank, said earlier this month that RBI is considering wholesale account-based CBDCs and retail CBDCs. “Much progress has already been made on the wholesale account-based one, while the retail CBDC is a little more complicated and will take longer. Depending on which is ready first, the RBI will release the digital currencies for a pilot,” Sankar said.

On Friday, the RBI board also reviewed the current domestic and global economic conditions, challenges, and remedial measures, as well as the half-year earnings statement for the period ended September 30, 2021. In addition to discussing the RBI’s operations, the board discussed the functions of local boards, activities of selected central office departments, and the draft report on trends and progress in Indian banking, 2020-21.

Deputy governors Mahesh Kumar Jain, Michael Debabrata Patra, M Rajeshwar Rao, Sankar and other directors of the central board Satish K Marathe, S Gurumurthy, Revathy Iyer and Sachin Chaturvedi attended the meeting. Debasish Panda, secretary, department of financial services, also took part.



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