The Reserve Bank of India Says Cryptos Are not a Threat
January 5, 2019 3:20 pm
Recently the Reserve Bank of India (RBI) published a report which says cryptocurrencies are not currently a threat. The central bank says that due to the rapid growth and adoption of cryptocurrencies, this assessment could change. RBI also included that constant monitoring of cryptocurrencies is needed.
RBI published its “Report on Trend and Progress of Banking in India 2017-18” on Dec. 28. The report cites an analysis by the Financial Stability Board (FSB), an international body which monitors and makes recommendations about the global financial system.
Quartz India recently reported that a global financial body that includes India says cryptocurrencies aren’t a threat.
India’s central bank announced:
“The FSB has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets. Its initial assessment is that crypto-assets do not pose risks to global financial stability currently.”
The RBI, the Securities and Exchange Board of India, and the Ministry of Finance are members of the FSB. The membership also includes 23 other countries and international organizations like the European Commission, the Bank for International Settlements, the International Monetary Fund, and the World Bank.
In April 2018, the Reserve Bank of India (RBI) stopped other banks from doing business with cryptocurrency companies.
The central bank said:
“It has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling [cryptocurrencies]. Regulated entities which already provide such services shall exit the relationship within a specified time.”