RBI: Crypto may result in 'Dollarisation' of India's economy
The RBI authorities indicated that bitcoin will have a detrimental influence on the country's financial sector while considering its consequences. While cryptocurrencies have the potential to replace the rupee as a medium of exchange in domestic and cross-border financial transactions, the RBI's capacity to oversee the flow of money will be jeopardized, according to central bank officials. Top Reserve Bank of India (RBI) officials are said to have informed a parliamentary panel that cryptocurrencies might lead to the " dollarization " of a section of the economy, which would be bad for India's national interests. Top RBI officials, including governor Shaktikanta Das, testified before the Parliamentary Standing Committee on Finance, which is led by former finance minister Jayant Sinha.They emphasized their reservations about cryptocurrencies, claiming that they represent a risk to the financial system's stability. While cryptocurrencies have the ...