The Government has said that the Reserve Bank of India has registered its concern over the adverse effect of Cryptocurrencies on the Indian economy.
This was informed by the Finance Minister Nirmala Sitharaman in a written reply in Loksabha today. She said that according to the RBI, Crypto currencies are not a currency because every modern currency needs to be issued by the Central Bank or government.
The Finance Minister said that in view of the concerns expressed by RBI on the destabilising effect of cryptocurrencies on the monetary and fiscal stability of the country, RBI has recommended framing of legislation on this sector. She said that the RBI is of the view that cryptocurrencies should be prohibited.
The Finance Minister said that RBI has been cautioning users, holders and traders of virtual currencies that dealing in these currencies is associated with potential economic, financial and operational, legal, customer protection and security-related risks.
