RBI Governor Declares No Change in Cryptocurrency Views

Following the new circular, stakeholders in the cryptocurrencies trade have welcomed it as a vindication
RBI Governor Declares No Change in Cryptocurrency Views
RBI Governor Declares No Change in Cryptocurrency Views

RBI Governor Shaktikanta Das on Friday made it clear that the central bank's view on cryptocurrencies like Bitcoin remains unchanged and it continues to have "major concerns" on the volatile instruments.

"There is no change in RBI's position (on cryptocurrencies). Our circular clarifies the position very well," Das told reporters in the customary post-policy press conference, when asked if there has been a change in its view.

The RBI had in 2018 first issued a circular cautioning the people against investing in cryptocurrencies, which do not have any sovereign character. The central bank had also prohibited its regulated entities from dealing in such instruments; however, the circular was struck down in early 2020 by the Supreme Court.

Das said a revised notification to financial institutions on Monday was necessitated because some banks were still referring to the old circular set aside by the apex court, and this was an attempt to set the record straight.

The RBI had on Monday asked banks, NBFCs and payment system providers not to refer to its previous 2018 circular in their communications to customers.

"With regard to RBI's position (on cryptocurrencies), I had said earlier, we have major concerns around cryptocurrency which we have conveyed to the government," Das said.

Following Monday's circular, some stakeholders in the cryptocurrencies trade had welcomed it more as a vindication.

Some of the cryptocurrencies have seen massive dip in their per unit trading prices lately, leading to erosion of investor wealth. Some investors have been looking at cryptocurrencies as an attractive investment class.

Das on Friday said the central bank is not into investment advice, but added that one should make his own appraisal and do his own due diligence before taking such a call.

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