In a recent interview with ETNow, the Reserve Bank of India (RBI) Governor Shaktikanta Das shed light on the evolving landscape of cryptocurrency and the progress of the central bank’s digital currency initiative.
Das reiterated the RBI’s stance on cryptocurrency, emphasizing the risks and dangers associated with it. While acknowledging the technological advancements, particularly the blockchain technology underlying cryptocurrencies, Das emphasized the speculative nature of these assets. He highlighted the lack of underlying assets and corresponding liabilities, branding cryptocurrency as a speculative product.
The governor stressed the importance of distinguishing between blockchain technology, which has various applications including the central bank’s digital currency project, and speculative cryptocurrency trading. He noted the growing awareness among individuals, both in India and internationally, regarding the risks involved in cryptocurrency investments.
Meanwhile, talking about his previous characterization of cryptos as a dangerous product, Das remarked, “If you compare with where we were two years ago when there was a kind of exuberance building up, I think today there is a greater amount of realism.”
Regarding the launch of the central bank’s digital currency, Das expressed a cautious approach. He emphasized the importance of ensuring the safety, robustness, and integrity of the digital currency before its full-fledged launch. Das revealed that the pilot project for the digital currency has seen significant participation, with approximately 4.3 million retail users and 40 lakh merchants currently involved. He highlighted the ongoing learning process from the pilot project, addressing challenges related to technology, safety features, and transaction speed.
Das emphasized that the RBI is not in a hurry to launch the digital currency and will only proceed when they are fully confident about its integrity and safety features. He reiterated that there is no fixed timeline or target date for the launch, indicating that it will depend on the RBI’s satisfaction with the product’s readiness.
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