In the presentation, senior executives highlighted the issue of traceability of transactions, valuation of crypto, extreme price volatility, legal issues and the identification of various actors. crypto Transaction chains as areas of concern. Among the board members, Revathi Iyer (former Deputy Comptroller and Auditor General) expressed the need to proceed with caution. However, another board member Sachin Chaturvedi (Director General of Research and Information Systems for Developing Countries) cautioned policy makers against taking excessive steps and mitigating risks globally. He highlighted instances in the past when the government had to back down.
Department of Financial Services Secretary Debashish Panda, who also attended the meeting, did not comment on the crypto issue. The situation was also discussed in the 592nd meeting of the Central Board. Central bankof digital currency. Additionally, the board took the half-yearly income statement of RBI for the six months ended September 30, 2021.
The board’s discussion on cryptocurrencies comes at a time when the government has listed cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for the Winter Session of Parliament. The Center is silent on the law. Word on the bill – stating that it seeks to create a facilitating framework for a central bank digital currency and allow crypto to promote the underlying technology for a few exceptions – has given rise to speculation that crypto should be considered an asset. as may be legalized.
The RBI has been adamant in its opposition to the recognition of alternative currencies. While the central bank has been forced to withdraw its ban on cryptocurrencies in 2018 following a Supreme Court order, it has not changed its mind. “Very in-depth discussion is needed (on crypto). When the central bank says that it has very deep concerns from the point of macroeconomic and financial stability, there are far deeper issues that are part of it,” RBI Governor Shaktikanta Das said. He had said while speaking at an event in October 2021. He said that these concerns need to be discussed.
“The board also discussed various areas of operations of the Reserve Bank, including the functioning of local boards, activities of select central office departments and the draft ‘Report on Trend and Progress of Banking in India, 2020-21’,” RBI said. said in a statement. Central bankers present at the board meeting included deputy governors Mahesh Kumar Jain, Michael Debabrata Patra, M Rajeshwar Rao and T Rabi Shankar. Other central board directors Satish K Marathe and S Gurumurthy also attended the meeting.
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