Indian Gov’t Committee Is Worried About Crypto’s Impact on Rupee’s Stability: Report

According to the article, the source further explained that the “overall impact on the financial ecosystem that it is likely to have is still unclear and it has been a challenge to convince them on this particular point.”The article suggests that such concerns have been spurred by a report released by the Bank of International Settlements (BIS) in March. As Cointelegraph reported at the time, the banking giant suggested authorities “continue their broad monitoring” of digital currencies outside centralized control. The BIS also warned that even central bank-issued digital currencies (CBDCs) could be a threat to financial stability.Later that month, news broke that the governmental committee had reportedly suggested that cryptocurrencies should be legalized in the country. Moreover, in January, the RBI reportedly gave up its crypto-rupee plans, as the results of a study on stablecoins conducted by an interdepartmental group proved unsatisfactory. In response to the ban, multiple crypto-related businesses filed a suit against the bank in the country’s Supreme Court, with the legal outcome still unclear.

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