RBI Governor Propels E-rupee Pilots While Raising Caution Flags on Cryptocurrency Adoption
In a recent statement, Reserve Bank of India (RBI) Governor Shaktikanta Das emphasized the significant risks that digital currencies pose for emerging economies. Despite growing acceptance in various countries, Das reiterated the RBI’s unwavering stance against cryptocurrencies, labeling them as potential threats to both advanced and emerging market economies.
Das emphasized that the risks associated with venturing into the world of digital currencies would be challenging to contain in the future. Regardless of recent developments, such as the US SEC approving the first listed exchange-traded funds for tracking Bitcoin, Das remained firm in the RBI’s position on cryptocurrencies.
During the discussion, the RBI Governor shed light on India’s central bank digital currency, known as the e-rupee. He revealed the RBI’s plans to initiate pilots for new segments in the wholesale Central Bank Digital Currency (CBDC) space. This move reflects the central bank’s commitment to exploring innovative solutions while maintaining caution and control over the financial landscape.
Addressing concerns about the Unified Payments Interface (UPI), Das hailed it as perhaps the best payment system globally. Dismissing claims of monopoly surrounding the UPI creator, the National Payments Corporation of India (NPCI), Das asserted that there is still ample room for UPI to grow and evolve.
Das has been vocal in the past about the potential dangers posed by cryptocurrencies to India’s macroeconomic stability. His stance has included advocating for an outright ban on Virtual Digital Assets (VDAs), reflecting the central bank’s commitment to safeguarding the country’s financial ecosystem.
As digital currencies gain momentum globally, Das’s statements serve as a reminder of the cautious approach needed, especially in emerging economies. The RBI remains steadfast in its commitment to preserving financial stability and protecting the economy from the potential pitfalls associated with the widespread adoption of cryptocurrencies.