The RBI governor noted that crypto trading is not a very big issue for the country, instead stablecoins are the main issue under the purview of RBI.
The Reserve Bank of India (RBI) is known for its crypto-hater stance but loves to use blockchain technology. Over several years, RBI issued several warnings against cryptocurrency investment and also reminded citizens via several notifications that cryptocurrencies are not legal tender.
Recently in speaking with MoneyControl, the RBI deputy governor T Rabi Shankar said that he is not in tension because of the Inclination of the Indian citizens toward crypto trading, but instead the nature of crypto assets as a currency.
“People trading crypto is not the concern but the unbacked cryptocurrencies and the product itself alongside its backers is the problem,” an RBI official said.
In short, the RBI official raised concerns over the surging use of cryptocurrencies as a payment method, despite cryptocurrencies not being legal tender in the country.
Further, he raised questions over the surging adoption of stablecoins ( USDC, USDT, BUSD, etc) among the citizens. He said that people using stablecoins, which are backed by foreign currencies or cryptocurrencies, is a very big issue.
According to the RBI deputy governor, stablecoins adoption is a very big threat to the country’s economy. In this way, he indirectly hinted that RBI is going to take very big action against the surging use of stablecoins on the crypto trade platforms.
Some experts said that there is a chance that RBI will take legal action or may issue an advisory for the crypto companies not to support stablecoins or probably may force all the crypto platforms to forcefully use the Indian Central Bank Digital Currency (CBDC), or say Digital Rupee, over stablecoins.
In recent months, the Indian finance ministry proposed the concept of a global crypto regulation framework & also proposed an alternative path to ban the cryptocurrencies use in the country.