Bitcoin: RBI makes clear, its views on cryptocurrencies remains unchanged

Jun 05 2021 12:54 PM
Bitcoin: RBI makes clear, its views on cryptocurrencies remains unchanged

RBI Governor Shaktikanta Das on Friday made it clear that the Central Bank’s view on Bitcoin remains unchanged and it continues to have “major concerns” on the volatile instruments. “There is no change in RBI’s position (on cryptocurrencies). Our circular clarifies the position very well,”  Das told before media persons.

The RBI had first come out with a circular on the issue in 2018, cautioning people about investing in cryptocurrencies, which do not have any sovereign character. It had barred entities regulated by it from dealing in such instruments. However, the Supreme Court in early 2020 struck down the circular.

The Governor said a revised notification to financial institutions on Monday was necessitated because some banks were still referring to the old circular set aside by the apex court and this was an attempt to set the record straight. The RBI had on Monday asked banks, NBFCs and payment system providers not to refer to its earlier 2018 circular in their communications to customers.

Some of the cryptocurrencies have seen massive dip in their per unit trading prices lately, leading to erosion of investor wealth. Some investors have been looking at cryptocurrencies as an attractive investment class.

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