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
Nepal is most dangerous for planes: 19 accidents occurred in 10 years, in which 104 people died
The black box of the Tara Airlines plane that crashed in Nepal was found on Tuesday. The bodies of all the 22 people killed in the accident were brought to Kathmandu for post-mortem. After this
Firing in Central Mexico Bar: 10 Dead; 19 people lost their lives in a similar incident in March
The firing took place on Thursday at a bar in central Mexico. In this 10 people died. According to reports, the attacker started firing indiscriminately as soon as he entered the bar. During this,
The hope of relief: Will CNG prices come down after petrol and diesel? The government may consider Siam's demand
The Central Government reduced the prices of petrol and diesel by making a big cut in the excise duty and gave great relief to the public. Now it is expected that the government may soon reduce the
Umesh Pal Case: Fear was visible on the face of the mafia! Atiq's convoy stopped in Rajasthan, the sight looked something like this
In the Umesh Pal kidnapping case, the Prayagraj MP-MLA court on Tuesday sentenced former MP and mafia Atiq Ahmed to life imprisonment. In this case, the other two accomplices of the mafia have also
Maharashtra: To save the legislature of its MLAs, now the Uddhav camp has filed a petition, and the Supreme Court is ready for hearing
Even after the formation of the government in Maharashtra, the political battle between Uddhav and Shinde camp continues. Now the leaders of both camps are taking legal recourse to save the
Russia becomes the second-largest oil supplier to India, leaving Saudi Arabia behind
Russia has overtaken Saudi Arabia in terms of oil exports to India. Now Russia has become the second-largest oil supplier to India. Iran remains the largest country in the supply of oil to India.
MahaKumbh 2025: When a stampede-like situation arose, entry of passengers was banned at Prayagraj Junction, all gates had to be closed
The crowd of devotees returning from the city side of Prayagraj Junction after bathing in Sangam suddenly increased after 10 pm. When a stampede-like situation arose at 10.30 pm, the railway
India-China: China's share in India's imports decreased by 0.90 percent, and mobile phone imports fell by 55 percent
The share of Chinese goods in the country's total imports has declined by 0.90 percent. Its share was 16.5 percent in 2020-21, which came down to 15.4 percent in 20210--22. The goods that come more
Air India Plane Crash: The Government formed a high-level committee, first meeting will be held today; Big responsibility given to AAIB
The first meeting of the high-level committee formed by the Central Government to investigate the horrific plane crash in Ahmedabad will be held in Delhi on Monday. Government sources have given this
'Will help in regional problem', did China mention India by announcing help to Pakistan Army?
Describing Pakistan as a special friend, the Chinese military leadership said that the Chinese military would work closely with the Pakistan Armed Forces to deal with "complex problems" in the region
