Far deeper issues involved in cryptocurrency, RBI has serious concerns: Shaktikanta Das

"When the central bank says we have serious concerns after due internal deliberations, there are far deeper issues involved," said Das at the SBI Banking and Economics Conclave on November 16, reported Money Control.

Blockchain technology has been in existence for 10 years and it can grow even without cryptocurrencies, he said.

On November 13, Prime Minister Narendra Modi chaired a meeting on cryptocurrency, amid concerns over misleading claims of huge returns on cryptocurrency investment, dealt in unregulated crypto markets.

In the meeting, discussions were focused on unregulated crypto markets and how they can be prevented from becoming avenues for "money laundering and terror financing", reported PTI.

Concerns were raised over "non-transparent" and "over-promising" advertising in attempts to mislead the youth into investing in cryptocurrency and they should be stopped, signalling that strong regulatory steps could be soon announced.

“It was also an outcome of a consultative process as RBI, Finance Ministry, Home Ministry had done an elaborate exercise on it as well as consulted experts from across the country and the world. Global examples and best practices were also looked at,” the source told PTI.

On November 10, Reserve Bank of India (RBI) Governor Shaktikanta Das expressed concern over cryptocurrencies from a point of view of the macroeconomy and financial stability.

"We have given our detailed suggestions, as far as I know, the matter is under active consideration of the government and the government will decide," he was quoted as saying by Money Control on how the issue has to be dealt with.

“The number of investors on sense I have is that I’m not so sure about the numbers which are being quoted,” Das said, adding as it is an unregulated territory the central bank doesn’t get full information.

“With a reasonable amount of confidence, I think the number of participants claimed in the crypto market are somewhat exaggerated,” he had said.

The government's decision to bring the legislation at the earliest stems from concerns over the unchecked growth of an unregulated sector.

The Prime Minister's meeting was followed by a meeting of the Parliamentary Standing Committee on Finance with various stakeholders from the digital currency ecosystem.