Reserve Bank of India wants total ban on crypto, since regulation is “impossible”

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Last Updated on 18 December 2021 by CryptoTips.eu

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India’s central bank, the Reserve Bank of India has proposed a complete ban on cryptocurrency in the country. Persons familiar with the matter, the bank made this known in a presentation to its central board in a meeting on Friday December 17.

Citing macroeconomic, financial stability and exchange management as major concerns, the bank stressed the difficulty of regulating digital currencies which they say have their sources overseas. It also expressed concerns over the trading of cryptocurrencies on foreign exchanges and the fact that such transactions are secret.

Some board members however expressed reservations concerning the outright ban on cryptocurrencies, another source says. The board members are suggesting that a rather holistic approach be used to examine cryptocurrencies in the light of technical advancements and how it may affect the country’s financial sector.

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India joins Russia in crypto ban

Many countries are against crypto which they see as a threat to their financial stability. However, only few have proposed outright ban on cryptocurrencies. The proposed ban by India’s central bank makes the country the latest to consider a blanket ban on all public digital currencies.

Russia recently proposed a similar ban on cryptocurrency investments, citing the risk of financial instability. If it goes through with the decision, it will be illegal for any Russian resident to buy, sell or hold any cryptocurrency. A similar attempt has been made in China which started with the complete ban on Bitcoin mining that drove miners from the country in October this year.

Interestingly, one thing these countries have in common is their pursuit of a central bank digital currency. Both Russia and China are at advanced stages of testing their proposed digital currencies while India is already considering a legal framework for launching one, probably to serve as a substitute for decentralized digital currencies if they eventually place the ban.

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