Next Financial Crisis Will Come from Private Cryptocurrencies: RBI Governor

Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday warned that the next financial crisis will come from private cryptocurrencies adding that he still holds the view that cryptocurrencies should be prohibited.

The governor of the country’s central bank also added that cryptocurrencies have no underlying value and pose risks for macroeconomic and financial stability.

Earlier this month, a top RBI official stated that transactions via central bank digital currencies (CBDC) would remain anonymous “to a certain degree”, adding that technology and legal provisions could be explored to ensure that anonymity. India started the pilot project for its digital currency, or e-rupee, from November 1, when it was opened for an initial trial.

Then only being used by banks for settlements with each other, the scope of the project was expanded to include consumer and retailer-led transactions from December 1.

The RBI has not yet clarified the degree to which CBDC transactions will be anonymous, but the income tax department allows cash transactions up to a certain limit to be carried out without furnishing any government identity proof and the same rules may apply, RBI governor Shaktikanta Das said at a post policy press conference.

At present, it is mandatory to furnish proof of Permanent Account Number, a unique 10-digit alphanumeric number issued by the Income Tax Department to taxpayers, for any deposits above Rs. 50,000.

Bankers have raised concerns about the project saying that in its current form, they don’t see any benefits of CBDCs which is similar to internet-based banking transactions.

Many of them also say that the Unified Payments Interface (UPI) instant real-time consumer payments system, that lets users transfer money between banks without disclosing account details, could be a tough competitor for retail use of e-rupee.

© Thomson Reuters 2022


Affiliate links may be automatically generated – see our ethics statement for details.

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

OnePlus 11 Antutu Scores Surface Online; New Leak Hints at 16GB RAM, 512GB Storage Variant

Featured video of the day

The Tech Scoop from Music Legend AR Rahman

For all the latest Technology News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechNewsBoy.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.