INSUBCONTINENT EXCLUSIVE:
RBI's views on cryptocurrencies may have delayed the proposed legislation on crypto assetsMumbai: Reserve Bank of India (RBI) deputy
governor Michael Patra on Wednesday said the central bank's views about cryptocurrencies might have delayed the government's proposed
legislation on crypto assets.Emphasising that the Central Bank Digital Currency (CBDC) will be introduced in 2022-23 as announced by finance
minister Nirmala Sitharaman in the budget speech, Mr Patra said India will proceed very gradually on the subject as there are concerns on
privacy, its impact on monetary policy formulation and energy intensity.The government had plans to introduce a bill on cryptocurrencies
I think it is the one of the views that has actually delayed a bill on that subject but we will engage in a fair debate on that subject and
will look at all sides of the debate," Mr Patra said, speaking at an event organised by the Pune International Centre.The central bank is in
favour of a complete ban on the speculative assets, saying they hold no underlying value at all, and has also called them a threat to
financial stability.On the CBDC, Mr Patra said there already exists such an instrument on the wholesale front but it is retail where work is
required."I think we will proceed very gradually
We will cross the river by feeling the pebbles
There are issues of privacy that are involved, there are issues of monetary policy transmission that are involved
There is also an issue of energy intensity of the whole process if it is on a certain kind of technology," he said.RBI is proceeding "very,
very slowly" on the subject and will make calibrated moves in the direction, the deputy governor noted.
