India’s central bank is worried that its crypto crackdown may backfire.
The Reserve bank of India (RBI) fears it may be pushing cryptocurrencies into the shadows.
There is a need to keep track of trade in virtual currencies turning opaque, the RBI has said in its annual report released on Aug. 29.
The dislike
The RBI’s uneasiness with cryptocurrencies is well known.
One reason it wants to ring-fence the sector is to protect customers. “Though cryptocurrency may not currently pose systemic risks, its increasing popularity leading to price bubbles raises serious concerns for consumer and investor protection, and market integrity,” the report said. For instance, bitcoin lost nearly $200 billion in market capitalisation in about two months from the peak value in December 2017, it added.
