RBI's Views May Have Delayed Cryptocurrency Bill: Deputy Governor Michael Patra

Reserve Bank of India (RBI)'s views on cryptocurrencies may have delayed government's proposal on the legislation of crypto assets, Michael Patra, the deputy governor of RBI said on Wednesday, 23 February.

(Photo: The Quint archives)

Reserve Bank of India (RBI)'s views on cryptocurrencies may have delayed government's proposal on the legislation of crypto assets, Michael Patra, the deputy governor of RBI said on Wednesday, 23 February.

Since there are concerns on privacy, impact of crypto assets on monetary policy formulation and energy intensity, Patra said India will move forward "very, very slowly" on this aspect, reported news agency PTI.

He however asserted that the Central Bank Digital Currency (CBDC) will be introduced in 2022-23 as per the announcement made by Finance Minister Nirmala Sitharaman.

Speaking at a programme organised by Pune International Centre, he further said the Centre had plans to introduce a cryptocurrency bill during Parliament's winner session, however it did not introduce the bill.

"RBI's view is quite known on crypto. I think it is the one of the views that has actually delayed a bill on that subject but we will engage in a fair debate on that subject and will look at all sides of the debate," reported news agency PTI.

RBI reportedly wants a complete ban on speculative assets as the bank considers they have no underlying value. It has even said they would pose a threat to financial stability.

"I think we will proceed very gradually. We will cross the river by feeling the pebbles. There are issues of privacy that are involved, there are issues of monetary policy transmission that are involved. There is also an issue of energy intensity of the whole process if it is on a certain kind of technology," Patra further said as per PTI.

(With inputs from PTI.)