The Reserve Bank of India (RBI) in a report, said that cryptocurrencies are not currently a threat to the society. But with time, their view about these digital assets may change. They presume that this change in opinion will be brought about by the mass adoption of virtual currencies and their widespread use.
RBI Quotes FSB’s Conclusion That Cryptocurrency is Not a Threat
The Central bank published a report titled “Report on Trend and Progress of Banking in India 2017-18” on December 28 to reveal its stance on these digital assets. First of all, they quoted the Financial Stability Board (FSB), a global financial body to have carried out a review to ascertain the risks posed by virtual currencies to financial stability. The result was that cryptocurrencies did not pose any risk at the moment.
The FSB is known to be made up of the RBI, Ministry of Finance, the Securities and Exchange Board of India, 23 countries, and international organizations. Some of these organizations include the International Monetary Fund, the European Commission, the Bank for International Settlements, and the World Bank.
RBI Says Cryptocurrency’s Rapid Growth is a Concern
Despite clearing this doubt, the Central bank has said that the rapid growth of crypto-assets and their price volatility could become a major concern to investors. Therefore, customers and investors alike, have been warned to invest with caution since there is still some level of risks that could be faced.
The FBI further stated that their initial assessment to the risk level of crypto-assets could change given their rapid growth. The same was said about their widespread use and being more integrated into the financial system. The financial institution has called for close and constant monitoring of these digital assets if this financial stability has to be maintained in the future.
India’s Non-friendly Crypto-environment
For the past two years, companies who may want to carry out crypto-related operations in India have found it quite challenging. This can be attributed to the circular that was sent to banks in the region to stop providing financial services to those involved. Many people have solicited to revert this, but all attempts seem to have been futile.
Nevertheless, there are still privately owned businesses that are accepting these virtual currencies as payments. One of the oldest Bookstores in India, for instance, began accepting Bitcoin as a means of payment for books. This is an online store that caters for people all over the world.