RBI Financial News

The governor of the Reserve Bank of India, Shaktikanta Das, has reiterated the central bank’s negative stance on crypto. He said that the RBI’s position on cryptocurrency remains unchanged.

In an exclusive interview with ETMarkets, Shivam Thakral, CEO of BuyUcoin, highlighted how the upcoming 2024 US presidential election and recent interest rate cuts by the Federal Reserve could reshape the cryptocurrency market. He noted that the 50 basis point rate cut is likely to boost investor interest in cryptocurrencies, while the increasing political influence of younger, pro-crypto voters may lead to significant policy shifts. With the recent 50 bps interest rate cut by the US Federal Reserve, how do you expect this to impact the crypto market in both the short and long term? Do you anticipate increased investor appetite for riskier assets like cryptocurrencies?

In a July 25 interview with Moneycontrol, Indian Economic Affairs Secretary Ajay Seth announced that the country will release a discussion paper outlining its stance on cryptocurrencies before September 2024.

Securities and Exchange Board of India (SEBI) has recommended several regulators oversee crypto trade nationwide. This move has sparked considerable interest within India's crypto community, given the RBI's historically strict control over digital assets. It's important to highlight that since 2018, the RBI has maintained strict control over cryptocurrencies, forbidding banks and other regulated entities from facilitating crypto transactions. However, SEBI's recent proposal for a multi-regulator approach to oversee crypto trading has injected a sense of anticipation into the market.

Mudrex, an Indian cryptocurrency investment platform, has announced plans to offer US spot Bitcoin (BTC) exchange-traded funds (ETFs) to institutional and retail investors in India, said CEO and co-founder Edul Patel in a recent interview.

RBI) Governor Shaktikanta Das shed light on the evolving landscape of cryptocurrency and the progress of the central bank's digital currency initiative. Das reiterated the RBI's stance on cryptocurrency, emphasizing the risks and dangers associated with it. While acknowledging the technological advancements, particularly the blockchain technology underlying cryptocurrencies, Das emphasized the speculative nature of these assets. He highlighted the lack of underlying assets and corresponding liabilities, branding cryptocurrency as a speculative product.

Bank of India (RBI) Governor Shaktikanta Das said Tuesday, just days after the US capitalmarkets regulator approved bitcoin exchange traded funds. “They (the US Securities and Exchange Commission) are the best judge of what is good for their country, so they have done it. I would not like to comment on what another regulator in another country has done,” Das said at the World Economic Forum at Davos. “So far as India is concerned, we see a lot of risks and it is not necessary for us that what somebody else does, we simply adopt.” Last week, the US SEC approved ETFs based on bitcoin, a move that sent cryptocurrency prices soaring worldwide. Das has steadfastly maintained over the years that cryptocurrencies pose a palpable threat to currency and monetary stability and could be the source of the next major global financial crisis.

SEC) approved US-listed exchange-traded funds (ETFs) that track Bitcoin, Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday warned that crypto mania can have a Tulip mania-like outcome. «We are all familiar with the Dutch term Tulip mania in the Netherlands. I don't think the world, emerging markets in particular, can afford crypto mania which can have a similar outcome,» Das said at Mint BFSI Summit. While making it clear that RBI's position on crypto remains unchanged, irrespective of who does what, Das said, «Just because somebody is doing something, we are not here to emulate them....travelling down that path will create huge risks which, going forward, will be very very difficult to contain.» Paving the way for inflow of billions of dollars in cryptocurrency, the US has approved 11 Bitcoin spot ETFs. For Indian investors, the Bitcoin ETF will provide an opportunity to include crypto in their portfolio via the LRS route.

India’s digital rupee hit 1 million daily transactions in December, aligning with the Reserve Bank of India’s targeted goal for daily transactions by the end of 2023, Reuters reported.

The recent push by G20 members to establish a global framework to regulate crypto has sent a wave of optimism among Indian crypto firms and investors. 

The Reserve Bank of India (RBI) central bank digital currency (CBDC), the digital rupee, will have enhanced usability, Yes Bank announced Aug. 30. This was thanks to Yes Bank’s integration of the Unified Payments Interface (UPI) with the RBI digital rupee app. Now Yes Bank account holders will be able to make transactions with the digital rupee by scanning UPI QR codes.

The Reserve Bank of India (RBI) is on course to expand the frontiers of its Central Bank Digital Currency (CBDC), the “digital rupee” as it negotiates with foreign countries to adopt cross-border payment systems.

crypto assets, stablecoins and DeFi (Decentralised Finance). «Under India's G20 presidency, one of the priorities is to create a framework for global regulation of unbacked crypto assets, stablecoins and DeFi, by considering both macroeconomic and regulatory perspectives to address the full range of risks posed by crypto assets, including risks specific to emerging markets and developed economies,» the RBI said in the latest edition of the Financial Stability Report. The turmoil in crypto markets throughout 2022, which led to the bankruptcy of the largest crypto trading platform, and the failure of two banks in March 2023 have highlighted the growing linkages between the traditional banking system and the crypto ecosystem. The central bank has said that while the market capitalisation of stablecoins is relatively small, nearly $130 billion, when compared to the traditional financial system, there is a possibility of continued interconnectedness, giving rise to financial stability risk concerns and negative spillover risks, which may be difficult to contain once the systemic exposure crosses a threshold.

Stablecoin has a lot of potential to harm emerging markets and developing economies, the Reserve Bank of India (RBI) claimed in its latest Financial Stability Report, released June 28. The report listed six threats that stablecoin presents.

NEW DELHI: Minister of State for IT and Electronics Rajeev Chandrasekhar on Tuesday said that cryptocurrency presents a “legitimate” case of macro economic risks, and there is a need for it to be regulated. “… it is a very legit case that crypto represents macro economic risks. It represents many other types of risks. FTX and other cases reaffirm that crypto is not business as usual and crypto is not innovation,” Chandrasekhar said while speaking at the Times Network’s India Digital Fest. The Minister said that countries and central banks around world are grappling with the problems around crypto “In India, crypto is not illegal if you buy them through legitimate channels of LRS (Liberalised Remittances Scheme) which are RBI approved dispensation on foreign exchange. It is your choice to lose money or make money, and the government does not get in the business of where you invest in and what you not invest in. But we certainly have the obligation to explain to the Indian citizens that you can’t exchange rupee for crypto… RBI is very clear on this… (and) we should respect their views on how they chart out the crypto course and crypto roadmap. They have said CBDC (central bank digital currency) is the route, and I have no problem with that. It is the best way to do that without creating any downside risk to the economy.” Did you Know?SAP has launched a new ente

The Reserve Bank of India (RBI) and Central Bank of the United Arab Emirates (UAE) announced on March 15 that they had signed a memorandum of understanding on collaboration and innovation in financial services.

International Monetary Fund and the Financial Stability Board (FSB) with jointly preparing a technical paper on crypto assets. The paper could be used to formulate a coordinated and comprehensive policy to regulate crypto assets. The G20 will draw up a universally acceptable international framework to regulate crypto assets and said that only a central bank-backed monetary unit would qualify as a currency. «To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has proposed a joint technical paper by the IMF and the FSB, which would synthesise the macroeconomic and regulatory perspectives of crypto assets,» according to an official statement. The joint technical paper would be presented at the finance ministers and central bank governors meeting in October 2023, it said.

RBI's CBDC, also known as the digital rupee, is a new way to utilise the money that isn't much different from the banknotes that are now in circulation. The only difference is that the digital rupee is anticipated to be used more frequently and traded digitally. The CDBC is promoted as being more secure than private cryptocurrencies because it is an electronic version of sovereign cash. Any currency that is only offered in electronic form is considered digital currency. Many countries' financial systems already heavily rely on electronic forms of currency. However, digital currency can only be exchanged virtually and never leaves a computer network. As more and more of our daily activities are undertaken online and as the international economy becomes more digital, digital assets have grown in significance. The following points highlight the importance of digital assets: In comparison to traditional asset classes, digital assets may be easily stored, transferred, and sold on digital platforms, which can speed up operations and save costs.

Some members of the G20 said during this week's discussions that a complete ban on crypto should be considered, Reserve Bank of India (RBI) Governor Shaktikanta Das said.

Prime Minister Narendra Modi called upon G20 member nations to develop standards and regulations for cryptocurrencies to mitigate the risks of destabilisation and misuse posed by innovation in digital finance.

Following continuous warnings by the Reserve Bank of India (RBI) on risks associated with cryptocurrencies, industry experts are expecting that the government will introduce additional measures in the Union Budget.