Financial regulators from India are still expressing major reservations relating to cryptocurrencies and their integration with the country’s economic system. Senior Central Bank executives have found little benefit in regulating cryptocurrencies, given their excessive volatility and nature of speculation.
Such caution aligns with the trustee stance that has been administered globally for crypto assets. The highlight of this is that from the Reserve Bank of India, there is much apprehension about cryptos and claims that the digital currencies pose chances for money blackmailing, money laundering and use in finance terrorism.
When done with crypto assets, CBDCs (central bank digital currencies) were recommended as safer alternatives that adhere to further compliance which includes purchaser protective measure policies and financial stability. Last year, the digital rupee was launched by the RBI and is considered to be a vast step for embracing digital innovations in the finance sector. While RBI opposes the aptitude of using private cryptocurrencies, deliberations for framing regulations for crypto assets with a comprehensive alignment offering many strategies to the authorities that consider developing environments’ landscape to successfully address economics and regulatory field.
The G20 New Declaration in March under the presidency of India proposed a suitable regulatory system to govern cryptocurrencies. Through this, the reasons include protecting economic stability and guarding consumer’s best interests whom were debating on the potentialities of digital currencies.
