22 NOV,2021 | MEDC
The RBI Governor has rightly said that there should be more debate and discussion about cryptocurrencies, and all cautionary notes struck by the Central Bank should be taken seriously. Blockchain technology is a decade old, and is here to stay and grow, but cryptocurrencies, which have developed around it, are a different ballgame altogether. India needs to tread carefully into this ecosystem. Many of these entities lack strong operational, governance and risk practices. For example, during periods of market turbulence, crypto exchanges have faced major disruptions. The global nature of crypto assets means that policymakers should enhance cross border financial coordination to minimize risks of regulatory arbitrage and ensure effective supervision and enforcement.
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