His notorious circular in which banks were ordered to stop offering services to cryptocurrency companies, possibly overturned in court, But India’s central bank is showing no sign of softening its stance on cryptocurrencies.
The Governor of the Reserve Bank of India, Shaktikanta Das reiterated the institution’s position in a recent press conference following a monetary policy statement, stressing:
“We have great concerns about cryptocurrencies that we have passed on to the government.”
The governor’s comments come afterwards The Reserve Bank of India had to make it clear that banks should no longer cite the now obsolete circular of the Reserve Bank of India as a reason not to serve cryptocurrency companies. Recent local media reports had indicated that the document continues to provide an alibi for banks that are reluctant to deal with companies in the cryptocurrency space, despite the Supreme Court claiming the prohibition was disproportionate and l. Has decideda canceled in March 2020.
That told reporters that the central bank wants “Make things clear” Yes “This particular RBI circular has been canceled, so it is incorrect to quote it.” Despite its lifting, banks are reluctant to open up to the sector in a general environment of uncertainty about the future of cryptocurrencies in India. That year, an anonymous source who claimed to be a senior official in India’s Treasury Department suggested that a blanket ban on cryptocurrencies, which has been talked about for some time, could still be enforced in the country.
To clarify the status of the circular, Das emphasized that banks should continue to take due diligence when dealing with crypto-related customers. The central bank has pointed this out repeatedly the risks of money laundering and terrorist financing that he fears that this could make the use of cryptocurrencies easier. At the same time he studies the possible must implement a digital currency issued by the central bank.