In a recent executive order on crypto in the US, the Federal Reserve was asked to consider ways to regulate cryptocurrencies.
The Reserve Bank of India (RBI) has again warned against cryptocurrencies after a huge drop in the crypto tokens UST and LUNA of Blockchain Terra. Recently, RBI officials had said that most cryptocurrencies are denominated in dollars and this could increase the dominance of the dollar in the country’s economy.
Regarding cryptocurrencies, RBI Governor Shaktikanta Das said in an interview with a news channel that RBI’s warning to be cautious about cryptocurrencies was correct. RBI had told the need to ban cryptocurrencies but the central government says that it will not completely shut down the crypto segment. Das said, “Crypto is something that has no value attached. There are many questions about regulating it. Our stand has always been clear. This can weaken the monetary, financial, and macroeconomic stability of the country.”
He said that the RBI and the government have the same stance regarding regulating crypto as the government is also apprehensive about it. Das said that the RBI has informed the government of its position regarding this and the government will consider it. To a question on the recent allegations of pressure on RBI by Brian Armstrong, Chief Executive Officer of Coinbase, one of the major crypto exchanges, Das said that he does not want to comment on such remarks made by an outsider. . Brian had said that Coinbase had removed the option of UPI payment for users in India due to pressure from RBI.
The crypto segment is not regulated in the country. The Finance Ministry has held meetings with various financial institutions like the International Monetary Fund, World Bank, RBI, and Securities and Exchange Board of India (SEBI) to regulate it. Central banks in some other countries are also apprehensive about this segment.
In a recent executive order on crypto in the US, the Federal Reserve was asked to consider ways to regulate cryptocurrencies. In recent months, due to the increase in the number of frauds involving cryptocurrencies, many regulators have pushed for increased scrutiny of this segment.