RBI Position is Unchanged on Crypto; Doesn’t Endorse Them

By Aditya Raghunath

Investing.com — Four days back, crypto enthusiasts’ hopes on the Reserve Bank of India (RBI) endorsing cryptocurrencies went up when it issued a clarification saying that banks couldn’t use its 2018 circular that prohibited cryptocurrency trading.

However, in today’s announcement, RBI Governor Shaktikanta Das made it clear that the RBI doesn’t endorse cryptocurrencies. He said, “With regard to advice to investors, well, central banks don’t give any investment advice. It’s up to each investor to make his own appraisal, to do his own due diligence and take a very careful call with regard to his own investments.”

Das added that the RBI was surprised when banks sent out advisories against cryptocurrencies quoting the 2018 RBI circular. He said it was important to set the record straight which is what the RBI did. It doesn’t change their stand on cryptocurrencies.

The RBI’s position means that banks will have to take on all the risks when it comes to dealing in cryptocurrencies. They will not have the RBI’s support in case of any issues.

This is not the first time that Das has come out strongly against cryptocurrencies. On March 25, at the India Economic Conclave, he said, “Both RBI and the government are committed to financial stability. We have flagged some major concerns to the government on cryptocurrencies. The government will come out with a decision sooner than later.”



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