Mumbai: Reserve Bank Deputy Governor Michael Patra on Wednesday said central bank views on currencies may have undermined the government’s proposed legislation on crypto assets.
Emphasizing that the Central Bank Digital Currency (CBDC) will launch at FY23 as announced by Finance Minister Nirmala Sitharaman in the budget speech, Patra said India will continue to do much more on the subject due to concerns over private, impact your on financial policy formulation. and energy efficiency.
The government had plans to introduce a bill on network currencies such as Bitcoin during the November Winter Congress of December-2021 but did not formulate it.
“The RBI overview is a well-known thing on crypto. I think it is one of the views that has actually held a financial position on the subject but we will have a firm discussion on the subject and it will see all sides of the controversy, ”Patra said, speaking at an event organized by the Pune International Center.
The central bank is in favor of a complete ban on legendary assets, saying they have no solid basis at all, and also that they pose a threat to financial stability.
On the CBDC, Patra said such equipment is already ahead of the wholesale but it is retail where it needs work.
“I think we will continue gradually. The process is based on some kind of technology,” he said.
The RBI is continuing “very, very slowly” on the subject and will be making calibrated moves in the direction, he noted.
A few weeks ago, former RBI Governor D Subbarao raised concerns over privacy on the front of the CBDC saying the tribe to check every single transfer of digital currency makes it vulnerable to tracking and also points to the absence of roads security such as a data protection law.
“Why would the RBI or government know how much ice cream I buy every month? Or what are the luxury brands I patronise? So, there is a concern and I think if you have CBDCs, you have to have “Very strong data security laws. which are reliable not only for people within the country but also abroad. Therefore, data security laws are very important in the distribution of CBDCs,” he said.
“In a country like India where the opposition is very strong, there may be false allegations, or (a) the government is using the data and covering it. So I can see a lot of political problems coming out of this,” the former governor said.