Will the existence of private currency like bitcoin end after the launch of RBI’s digital currency? Know what the deputy governor said

Question raised on the existence of private currency.

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Reserve Bank Deputy Governor T Ravi Shankar said in a webinar organized by the IMF that when the digital currency will be launched by the RBI, then the existence of private digital currency from India may end.

Reserve Bank Of India Central Bank digital currency ,CBDC) is working rapidly towards. RBI is moving step-by-step in this direction. Meanwhile, the deputy governor of the central bank, T Ravi Shankar (T Rabi Sankar) said that private cryptocurrencies may cease to exist due to CBDCs. He said this while speaking in a webinar organized by IMF. The government is preparing to bring a consultation paper on cryptocurrencies. Shankar has also objected to stable coins, which are said to be a type of currency. The Reserve Bank has been strongly opposed to cryptocurrencies like bitcoin. The central bank believes that such currency has no inherent value (underlying value) No, its nature is betting. The Reserve Bank has made its stand public in this regard. However, the government has not yet clarified its stand on cryptocurrencies.

Earlier this week, the Department of Economic Affairs under the Ministry of Finance said that it would soon come out with a consultation paper on private cryptocurrencies. “We believe that whatever is the case with private cryptocurrencies, it will end with the advent of CBDCs,” Shankar said while addressing an event here. Ajay Seth, Secretary, Department of Economic Affairs had said that there are various issues regarding cryptocurrencies. Based on the views of the parties, a consultation paper is being finalized and will be presented soon.

Reserve bank has trouble with private currency

Seth said that there is a need to take steps at the global level to deal with the challenges posed by cryptocurrencies. He said that due to the operation of these digital currencies in the virtual world, it is necessary that there is a global effort to deal with these issues. India has taken a cautious approach towards cryptocurrencies. The Reserve Bank of India has expressed its unease about cryptocurrencies on several occasions. He says that cryptocurrencies pose a threat to macro-economic stability.

Consultation paper in the last stage

Referring to the consultation paper being brought out to clarify the stance on cryptocurrencies, Seth said that it has been prepared to a great extent. “We have consulted not only domestic institutional stakeholders but also global organizations such as the World Bank and the International Monetary Fund,” he said. Hopefully we will be in a position to finalize our consultation paper soon.

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