RBI Deputy Guv Rabi says any data available on cryptocurrencies is misleading

On cryptocurrency, Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar said that any available data is misleading and called for all related rules to be built on a clear understanding of what digital currencies are and what they are supposed to do. He also called for a single communication across the board for effective regulation of cryptocurrencies.

“The data is not available. Any available data is misleading. And making regulations in the absence of adequate information carries a high probability that we end up with the wrong set of prescriptions,” T Sankar said on Saturday at a virtual conference hosted by the International Monetary Fund (IMF). The deputy governor stressed the need to collect “sufficient, reliable and consistent information”. On the regulatory front, he called for all related rules to be built on a clear understanding of what cryptocurrencies are and what they should do. He also called for a single communication across the board for a effective regulation of cryptocurrencies.

The deputy governor also campaigned for the formulation of an initiative modeled on the Organization for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework. “The initiatives would allow member countries to exchange information in real time,” he said. Sankar also urged global agencies, including the IMF, to take a leading role in helping regulate cryptocurrencies.

The RBI had said that the central bank digital currency (CBDC), or e-rupee, would be as anonymous as the banknote and have all the relevant applicable laws like banknotes.

In an interview following the Monetary Policy Committee’s announcement of repo rates, RBI Governor Shaktikanta Das on Dec. 7 said that e-rupee transactions will have no intermediary, unlike UPI transactions.

FTX became the latest crypto exchange to crash last month. The cryptocurrency firm has reportedly been using client money for various risky businesses. As a result, FTX customers have lost billions of dollars. Bankman-Fried, who used to hang out with political leaders, said he was unaware of any fraud. Prior to this, some of the companies that recently announced financial difficulties were Terraform Labs, Voyager Digital, Three Arrows Capital (3AC), Celsius Network and Babel Finance.

Read also: A future between blockchain and stock exchange? Well, there may be possibilities…

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