The Reserve Bank of India (RBI) has told a parliamentary committee that cryptocurrencies could lead to the dollarization of a section of the economy. This would be against the sovereign interests of India. According to sources, top officials, including RBI Governor Shaktikanta Das, presented their views before the Parliamentary Standing Committee on Finance headed by former Minister of State for Finance Jayant Sinha. He put his apprehensions about cryptocurrencies to him. He also said that this would pose challenges to the stability of the financial system.
RBI officials said this would seriously undermine the central bank's ability to set monetary policy and regulate the country's monetary system. He said that cryptocurrencies have the potential to become a medium of exchange and can replace the rupee in financial transactions both domestically and cross-border. Central bank officials said the currency could occupy a part of the monetary system and could also undermine the RBI's ability to regulate the flow of money in the system.
Reserve Bank officials cautioned that cryptocurrencies could also be used for terror financing, money laundering, and drug trafficking and could pose a major threat to the stability of the country's financial system. He told the parliamentary committee that almost all cryptocurrencies are dollar-based and issued by foreign private institutions. In such a situation, this may lead to the dollarization of some parts of our economy, which will be against the sovereign interests of the country.
RBI officials said cryptocurrencies will also harm the banking system as being lucrative assets, people may invest their hard-earned money in them, resulting in a lack of resources for banks to lend.
Also Read: Gautam Adani: Asia's richest man preparing to become cement king, know what is Gautam Adani's plan
Twitter New Logo X: Is the Twitter logo related to the 'X' sign of the Indian Railways? Why this mark is made behind the coach
'X' sign on India Train coach: Twitter's logo 'X' is trending a lot. This is being discussed everywhere. Indian Railways has also shared a post related to this. South Western Railway has questioned
Paris Olympics: 'These star shuttlers will win medals...', Deepika's father and badminton legend Prakash Padukone predicts
Veteran badminton player and mentor of top shuttler PV Sindhu, Prakash Padukone, believes that India has a strong chance of winning three medals in badminton at the Paris Olympics and this includes a
India ready to share 5G expertise: Finance Minister said – Our 5G is not imported, we can also provide it to other countries
Finance Minister Nirmala Sitharaman said on Thursday that India is ready to share its 5G technology expertise with other countries of the world. He said that some critical parts for 5G have been taken
Police started a rebellion against the Shahbaz government. Why did thousands of soldiers have to be deployed in PoK?
The situation in Pakistan-Occupied Kashmir (PoK) continues to deteriorate. Following the Awami Action Committee (AAC), the police in PoK have also taken to the streets to protest against the Pakistani
Bapu's statue misbehaved in the US: Demolition of a life-size statue of Mahatma Gandhi; This is the second incident to happen in 2 weeks.
The statue of Mahatma Gandhi was vandalized by miscreants in New York, USA. The statue was installed outside a Hindu temple in Queens County. The police officer said that 6 people have carried out
Kisan Andolan: Third round of talks inconclusive, next meeting on Sunday, farmers adamant on MSP, expressed objection on the use of force.
The ongoing third round of meetings between Union Ministers and farmer leaders in Chandigarh continued till around 1:30 am on Thursday-Friday night. The third round of talks also remained
Korean woman molested during live streaming in Mumbai: tried to kiss forcibly, accused seen in video arrested
A Korean woman was molested on Wednesday night in the Khar area of Mumbai. The incident happened at 8 pm. The lady from South Korea was streaming live. Then two boys came there and started
Rajkummar Rao: Rajkumar Rao is nervous about playing the role of Sourav Ganguly, said- 'This is a huge responsibility'
For some time now, there have been discussions about the biopic of former Indian cricket team captain and legendary player Sourav Ganguly. Sometimes there was confusion about whether the biopic would
New revelation in Puneet case: Manika's post on Insta is in discussion, 'After toxic environment and abuse'...
A sensational case similar to that of Atul Subhash of Bangalore has come to light in Delhi. Woodbox Cafe owner Puneet Khurana committed suicide by hanging himself on the night of 31 December. Before
Pakistan Crisis: Is Pakistan going to be in the same condition as Sri Lanka? Inflation at a decade high
Like Sri Lanka, our neighboring country Pakistan is also going through a period of serious economic crisis. According to media reports, the inflation rate in Pakistan is at the highest level in the
