Reserve Bank of India concerned crypto may impact financial stability

The Reserve Bank of India is concerned that cryptocurrencies may impact financial stability in Asia’s third-largest economy, a view that could shape looming regulations on the asset that is breaking price-records around the world.
 

The monetary authority has conveyed these “major concerns” to the government, Governor Shaktikanta Das said in an interview to CNBC TV-18 Wednesday. Prime Minister Narendra Modi’s administration is proposing to prohibit all private cryptocurrencies in the country and create a framework for an official digital currency.

The RBI had banned banks and other regulated entities from supporting crypto transactions in 2018 after digital currencies were used