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India’s central bank, the Reserve Bank of India (RBI) is constantly engaged with the government on crypto, according to RBI Governor, Shaktikanta Das.

RBI Will Wait for Consultation Paper on Crypto

Appearing in a press conference after the Monetary Policy Committee’s meeting which further hiked the repo rates by 50 basis points, the governor of India’s Reserve Bank, Shaktikanta Das said:

“I can say that on all issues there is constant engagement between the government and the Reserve Bank, including the cryptocurrency issues. We have given our views to the government.”

He further suggested waiting for the discussion paper, referring to the consultation paper on cryptocurrencies that a finance ministry official recently revealed is ‘fairly ready’. The consultation paper is likely to cover the regulatory framework for private cryptocurrencies in the country and would be put before the general public for their comments and suggestions. Das has been a strong opposer of cryptocurrencies and related services. Earlier he had said that cryptocurrencies will seriously undermine the monetary, financial, and macroeconomic stability of India. Regarding the recent crypto market crash, he said,

We have been cautioning against crypto and look at what has happened to the crypto market now.”

He also believes that the Indian government seems to be in sync with the central bank’s stance on crypto that they have no underlying value as the RBI governor had previously said,

“We have conveyed our position to the government and they will take a considered call. I think the utterances and statements coming out from the government are more or less in sync. They are also equally concerned.”

Notably, India’s younger demographics of teenagers are fuelling the country’s surge in crypto investments, which stood at nearly $6.6 billion in May from just $923 million a year earlier. While crypto exchanges do not allow trading for investors younger than 18-year-old, many Indian teenagers are defying the rules by using their parents’ credentials.

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