The government will introduce a bill in Parliament which will regulate cryptocurrencies in India. Before that, Former Reserve Bank of India Governor Duvvuri Subbarao has said the Reserve Bank of India could lose control over the money supply and inflation management if cryptocurrency is allowed in the country.
D. Subbarao who has served as the RBI Governor from 2008 to 2013 was speaking at a webinar organized by New York University (NYU) Stem School of Business and the National Stock Exchange.
Subbarao also spoke about the possibility of the central bank issuing digital currency. He sounded a note of caution saying central bank digital currency may not be strong as there are capital controls.
He added, “Crypto is backed by algorithms and there is fear that the central bank might lose control over the money supply and inflation management. “ He sounded a note of caution adding that crypto can jump controls.
