Indian Central Bank RBI Looks To Ban Cryptocurrencies

In a written statement, Indian Finance Minister Nirmala Sitharaman reiterated the Reserve Bank of India's (RBI) call to prohibit cryptocurrency but said global cooperation to ban it is needed.

What Happened: Over the past year, India has developed firm regulatory frameworks surrounding cryptocurrencies. Sitharaman has stated that India is looking to spotlight cryptocurrencies in a large-scale endeavor to prohibit the asset class.

The Reserve Bank of India has urged cryptocurrency prohibition numerous times in the past. As the country's central bank, it deemed virtual currencies to be a large-scale threat to the stability of global economies.

"Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage," Sitharaman said. "Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”

Why It Matters: Sitharaman's latest comments come amidst a major bearish market downturn. As market uncertainty prevails, global cryptocurrency adoption is obstructed by current macroeconomic turbulence and large-scale FUD. But, as cryptocurrencies continue to grow globally, countries looking to prohibit these assets may face a backlash from people and technologically innovative companies.

See Also: Is Bitcoin A Good Investment In 2022?