Overview
- RBI deputy governor Rohit Jain and executive director P. Vasudevan presented a background note to the Parliamentary Standing Committee on Finance on Thursday saying virtual digital assets pose a material risk to an emerging economy.
- The bank recommended a calibrated containment strategy that leans toward prohibition and called for banks and regulated institutions to be barred from holding, trading or taking exposure to cryptocurrencies and privately issued stablecoins.
- RBI warned privately issued stablecoins could weaken monetary policy, fragment payments and erode monetary sovereignty, and said offshore trading platforms make it hard to trace illicit finance such as terror funding and drug proceeds.
- The Institute of Chartered Accountants of India told the panel it supports a comprehensive VDA law and offered to draft principle-based accounting, auditing and disclosure guidance as the committee prepares a report likely to be published soon.
- No legislative ban exists yet, but the recommendation revives the bank's 2018 push to keep crypto away from banking channels, comes alongside tighter FIU, tax and enforcement steps, and could speed policy moves toward the RBI's e-rupee and regulated tokenisation of financial assets.