RBI On Cryptocurrency: RBI's big statement on cryptocurrencies, said - it threatens the dollarization of a part of the economy


Posted on 16th May 2022 01:28 pm by rohit kumar

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

1 Like 0 Dislike
Previous news Next news
Other news

Stopped demolition of 2 luxury hotels in Joshimath: 678 buildings unsafe, a scientific study completed; Some areas will also be sealed

The demolition of two hotels in Uttarakhand's Joshimath was stopped on Tuesday after protests by

Covid 19 In India: More than one thousand new cases came in the country for the third consecutive day, and 7927 active cases reached

Corona is once again wreaking havoc in the country. For the past several days, the cases of coron

Sunak is unable to assure inflation relief: In his party's survey, he lags behind the truss by 30 points, cost of living increased by 18%

There is a week left before the announcement of the new Prime Minister in Britain. There is a fig

Hera Pheri 3 makers sent a legal notice of Rs 25 crore to Paresh Rawal, but he left the film in the middle of shooting.

Paresh Rawal will no longer be Babu Bhaiya of Hera Pheri world, this one news itself brought disa

Mahakumbh 2025: Lauren Powell suddenly returned from Mahakumbh, and had to stay for 10 days; took this initiation from the guru while leaving

Lauren Powell, wife of Apple co-founder Steve Jobs, has suddenly returned from Maha Kumbh. She ha

Scuffle between MPs: Pratap Sarangi and Mukesh Rajput were discharged from the hospital; and were injured on Parliament House premises.

BJP MPs Pratap Sarangi and Mukesh Rajput, who were injured in the scuffle between MPs in the Parl

Supreme Court On Kolkata Doctor Rape And Murder: 'Supreme' hearing of the case of rape-murder of a doctor in Kolkata; Government-CBI presented the report

A petition related to the rape and murder of a doctor in Kolkata was heard in the Supreme Court.

Typhoon Muifa: Port stalled in East China, schools also ordered to be closed; What is the reason after all?

Authorities in China's eastern province of Zhejiang have ordered ships to return to port. It has

IND vs ENG: Team India practiced hard on the nets for four hours, 'Rohit Brigade' will adopt this formula against England

India, riding on the victory chariot in the ICC World Cup, will next face defending champions Eng

BJP On Parliament Security Breach: 'The more dangerous the violation of Parliament's security, the more dangerous it is to support it', PM Modi lashed out at the opposition.

The BJP Parliamentary Party meeting was held in the Parliament Library Building amid the winter s

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash