Indian Central Bank’s Report Shows Cryptocurrencies Are Not Currently a Threat

The Reserve Bank of India (RBI) has published a report indicating that cryptocurrencies are not a threat currently. However, the central bank says, with rapid growth and adoption of cryptocurrencies, this assessment could change, adding that constant monitoring of cryptocurrencies is needed.

No Threat Currently

Quartz India summarized on Thursday, “A global financial body, which includes India, says cryptocurrencies aren’t a threat.” India’s central bank wrote in its report:

The RBI, the Securities and Exchange Board of India, and the Ministry of Finance are all members of the FSB, along with 23 other countries plus international organizations such as the European Commission, the Bank for International Settlements, the International Monetary Fund, and the World Bank.

The central bank’s latest report echoes its annual report which states that “Though cryptocurrency may not currently pose systemic risks, its increasing popularity leading to price bubbles raises serious concerns for consumer and investor protection, and market integrity.”

RBI Says Constant Monitoring Needed

A number of industry participants have filed petitions against the ban. The supreme court is set to hear the case this month, after postponing it repeatedly last year.

The RBI continued to describe in its latest report:

No Hurry for Crypto Regulation

He wrote, “In absence of a globally acceptable solution and the need to devise [a] technically feasible solution, the department is pursuing the matter with due caution. It is difficult to state a specific timeline to come up with clear recommendations.”

Following this report, the CEO of local cryptocurrency exchange Wazirx, Nischal Shetty, told news.Bitcoin.com, “in a way it also puts out any fear of ban in India.” He elaborated: