RBI chief said that the central bank is in constant talks with the Government of India

The Reserve Bank of India’s Governor Shaktikanta Das recently said that the central bank is in constant talks with the government on the crypto matter. According to the chief of the RBI, the bank is consistently offering its views to the government. He referred to the consultation paper on cryptocurrencies by stating:

Let’s wait for the discussion paper.”

Notably, in May, during a brief to the parliamentary panel on crypto, RBI said that the digital assets acceptance could partly lead to the dollarization of the country’s economy. It believes that such a situation can seriously jeopardize its ability to regulate cash flow into the economy.

RBI and Government: Are they really together?

Despite the constant opposition from the RBI, a top official from the Finance Ministry revealed that the government was ready with a consultation paper, and it would be released soon. On May 31, the Economic Affairs Secretary, Ajay Seth, stated:

“The consultation paper is fairly ready. We have gone through a deep dive and consulted not just domestic stakeholders but also multilateral institutions like IMF and World Bank. We hope we’ll soon be in a position to finalize and submit it.”

According to reports by local media, the RBI chief justified not regulating the asset class by citing the crypto market implosion and claiming that the government’s views on the topic were more or less in line with the central bank’s attitude.

“We have conveyed our position to the government, and they will take a considered call. I think the utterances and statements coming out from the government are more or less in sync. They are also equally concerned.”

In the current fiscal year, the RBI plans to launch the CBDC. Deputy Governor T Rabi Sankar remarked on June 2 during an IMF webcast that CBDCs can undermine the rationale for cryptocurrencies, including stablecoins.

Experts believe that digital copies of national fiat currencies, which may interact with cryptocurrencies in their countries, will not function properly in a regulatory void.

Before this, Finance Minister Nirmala Sitharaman also said that the Government of India and RBI are on board with the new proposed crypto rules, as TheCoinRise reported.