Crypto Can Dollarize the Indian Economy: RBI

The Reserve Bank of India officials has informed parliament that one portion of the Indian Economy might be dollarised by the cryptocurrency. If it happens it will be detrimental to the Country’s economic interest.

As per the PTI report, the RBI governor along with other top officials talked about the issue with the Parliamentary Standing Committee on Finance, chaired by Jayant Sinha.

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They expressed their concerns regarding the cryptocurrency issue and how it can threaten India’s economic stability.

According to central bank officials, cryptocurrencies have the ability to replace real-world money and can be a medium of exchange in domestic and cross-border financial activities instead. And it will harm the RBI’s system in managing the flow of money.

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In the discussion about cryptocurrency effects, the officials stated that it could have a negative effect on the banking system. Because when the public will invest their hard-earned money in the currencies, the bank will not be able to lend money for not having enough resources.

In India, around 15 million people invest in cryptocurrency and the total crypto holdings amounted to approximately $5.34 billion.

Anupama Das

An active reader and follower of news. A budding journalist tries to spread authentic news to people.

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