The Reserve Bank of India (RBI) reportedly have told a penal at the Parliament that cryptocurrency might lead to ‘dollarisation‘ which will be detrimental to India‘s national interests.
RBI holds a panel discussion with the Finance Committee
As per reports from PTI, Shantikanti Das who is one of the top officials at the RBI, spoke at the Parliamentary standing Committee on Finance. The panel discussed various concerns that are raised about cryptocurrencies and how they pose a threat to the stability of national economy.
Many officials have pointed it out that cryptocurrencies have the potential to replace rupee and can be used as a medium of exchange in domestic and cross border financial activities. This potential of the cryptocurrencies can be termed both as a boon as well as have a negative impact upon the RBI.
As per reports from India Today, “almost all cryptocurrencies are dollar denominated and issued by foreign private entities, it may eventually lead to dollarisation of a part of our economy which will be against the country’s sovereign interest.”
