The Reserve Bank of India (RBI) recently released its annual report on Trend and Progress of Banking in India 2017-18. In what should come as great news for Indian crypto enthusiasts, the RBI may slowly be warming up to cryptocurrencies. India’s central bank has cited the Financial Stability Board (FSB)‘s assessment and said that crypto assets do not pose a threat to global financial stability at the moment. However, they also added a note of caution by stating that this initial assessment could change if cryptocurrencies become more widely used or interconnected with the core of the global financial system. The annual report has also mentioned that cryptocurrencies need constant monitoring.
It is good to see that the Central Bank is noting the assessment taken by a leading international agency like FSB, after its tumultuous history with the new asset class. Most developed countries are looking at creating a regulatory framework for cryptocurrencies to give the new industry a chance to flourish. If RBI follows the lead of such countries and regulates cryptocurrencies in the future, it would benefit Indian investors by giving them access to a new asset class and create new job opportunities in the space.
(Image credit: RBI Report)