RBI Governor Shaktikanta Das on Wednesday said cryptocurrencies are a "serious concern". "As a regulator, we have serious concerns (on crypto) from the microeconomic and financial stability point of view," Das said.
He said the number of participants in the crypto market is "exaggerated" but in volume terms, the number is "definitely increasing". Das said that a bulk of the investors in the crypto market have invested a minimal amount like Rs 1,000 or Rs 2,000.
The RBI has submitted a detailed report to the central government on cryptocurrencies, Das said during the Business Standard's BFSI Summit, adding that it is "under active consideration of the government".
Also read: India is the new cryptocurrency hub, and here's what is powering the craze
The Governor refused to comment when asked if the RBI would regulate the crypto industry whenever the government decides to regulate it.
Earlier in May also Das had said that the central bank had major concerns on cryptocurrencies traded in the market. "Central bank digital currency is one thing. The cryptocurrencies which are traded in the market are something else. Both RBI and government are committed to financial stability. We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government," Das said.
He also said the RBI is working on a digital version of a fiat currency, and is currently "assessing the financial stability implications of introducing such a Central Bank Digital Currency (CBDC)".
Despite the government and central bank's concerns, excitement around cryptocurrencies continues to grow and more people are investing in crypto assets. In fact, the ecosystem saw its first unicorn in CoinDCX in August and another in CoinSwitch Kuber in October.
Also read: Law to regulate cryptocurrencies likely by Budget
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today