The Reserve Bank of India (RBI) has published a report that cryptocurrency does not currently pose a threat. However, according to the central bank, due to the rapid growth and introduction of cryptocurrencies, this assessment may change, adding that constant monitoring of coins is necessary.
On December 28, RBI published the "Report on Banking Trends and Development in India for 2017–2018". The report provides an analysis by the Financial Stability Board (FSB), an international body that monitors and makes recommendations regarding the global financial system.
The Central Bank of India wrote in its report: "The FSB conducted an analysis of the risks of financial stability associated with the rapid growth of cryptoactive assets. An initial assessment showed that cryptoactives currently do not pose a threat to global financial stability."
The central bank’s latest report echoes its annual report, which states that "although the cryptocurrency may not present systemic risks at the present time, its growing popularity, leading to instability and price changes, raises serious concerns about protecting consumers and investors, and also the integrity of the market."
RBI believes that ongoing monitoring is necessary RBI reiterated in its latest report that it has repeatedly warned users, owners, and cryptocurrency traders of the various risks associated with these assets. In addition, on April 6, the central bank issued a circular prohibiting regulated organizations to provide services to cryptocurrencies. The central bank gave them three months from the date of the circular to withdraw from relations with crypto-companies.
RBI continued to describe in its latest report: "However, the market continues to grow rapidly, and this initial assessment may change if cryptoactives are more widely used or interconnected with the core of the regulated financial system ... Cryptocurrencies need constant monitoring of financial stability, given the frequent changes in their use."
Editor: Yuliya Soroka