India’s RBI reiterates no change in its stance on cryptocurrencies

India's RBI reiterates no change in its stance on cryptocurrencies

The Central Bank has gone on record to state that it will not be reversing its stance on the subject. The Reserve Bank of India (RBI) opposes cryptocurrencies because: lack of intrinsic value, poor investor protection, potential illegal activities and risks arising out of unbacked virtual currency.

Indian crypto traders remained unfazed despite the central bank’s strong anti-crypto stance. Local exchanges, unlike last month, did not report major price fluctuations following the Reserve Bank of India’s (RBI) recent monetary policy statement:

“NO CHANGE IN RBI’S STANCE. LET ME MAKE IT VERY CLEAR. THERE HAS BEEN NO CHANGE IN RBI’S POSITION ON CRYPTOCURRENCIES. THERE ARE MAJOR CONCERNS THAT WE TALKED ABOUT WITH THE GOVERNMENT.”

India’s central bank, the Reserve Bank of India (RBI), has been forced to reaffirm its position on cryptocurrency, reiterating its “no change” stance and continuing to oppose crypto in all its forms.

India’s central bank has reconfirmed its intent to stop its banking institutions from serving cryptocurrency companies, affirming our previous reports as inaccurate. The Reserve Bank of India (RBI) informed the news agency Press Trust of India that it had issued “several clarifications” to a circular it had released in April last year, which had banned the country’s banks and other regulated financial institutions from dealing with companies operating in virtual currencies like Bitcoin.

To recall, in April the RBI had directed all banks and financial institutions to stop providing facilities to any cryptocurrency-related businesses.

The Reserve Bank of India (RBI) announced it would instruct banks to discontinue support for businesses and individuals dealing in crypto within its jurisdiction. The announcement followed the statement issued by the Department of Economic Affairs in late-April that India’s government would not be passing any legislation around digital assets during the current fiscal year.

Meanwhile, the Reserve Bank of India (RBI), the country’s central bank, has reaffirmed its anti-cryptocurrency stance in recent months and continued to prohibit regulated financial services from conducting business with a variety of crypto-related businesses. In the wake of this, a petition was filed against the government in order to declare cryptocurrencies “legal.” Much more notably, however, is that Reserve Bank of India (RBI), the country’s ‘central bank,’ recently affirmed it has no interest in issuing its own official digital asset.

The Indian central bank has once again stressed that it remains opposed to cryptocurrencies, arguing that the ecosystem is riddled with risks. RBI reiterated its concerns surrounding the usage and risks of virtual currencies, in response to a Right to Information (RTI) request filed by a local lawyer.

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