Reserve Bank of India (RBI) Governor Sanjay Malhotra has reiterated concerns over cryptocurrencies, warning that their proliferation could hamper financial stability and pose challenges to monetary policy.
Speaking at a press conference following the RBI Monetary Policy Committee (MPC) meeting, Malhotra emphasized that while a government committee is currently reviewing cryptocurrency regulations, the central bank remains cautious about their impact on the economy.
The warning comes amid the Supreme Court’s recent call for a clear-cut policy on cryptocurrency regulation, highlighting concerns over illicit Bitcoin trading and its resemblance to hawala transactions.
India is currently working on a discussion paper on crypto assets, with an inter-ministerial group comprising officials from RBI, SEBI, and the Finance Ministry studying global regulatory frameworks.
