The Reserve Bank Of India Forms Committee For Studying Cryptocurrency Prices & Their Impact

Cryptocurrency prices continued to fall after ban enforced by the Reserve Bank of India. The crypto trade crippled down severely by the beginning of this year. However, the central bank of India has now started foreseeing the advantages and potential of crypto coins in India that is why RBI has constituted an inter-departmental committee to study and analyze the role of digital currency in India. Certainly, this has come out as the very first positive stand of the government on the cryptocurrency until now.

According to Economic Times, the Annual Report 2017-18 of Reserve Bank of India clearly mentions that a committee has been formed in order to provide guidance on the desirability and feasibility of digital currency. The breaking news helped the market to improve the cryptocurrency prices to some extent.

In addition to this, the report also assertively mentioned about the fact that there is a need for centrally backed virtual asset in the economy. There has been a significant rise in the cost of metallic money and fiat paper which has led the economies to explore other available options. In an RTI response, it was stated that the total cost of paper printing in the financial year of 2018 was Rs 636 crore.

According to Crypto News, the report also reveals that crypto coins do not pose systemic risks at the moment but its popularity may give rise to serious concerns. The cryptocurrency prices are extremely volatile at the moment.

EY India, Partner Advisor Mahesh Makhija stated that the suggestion of a bank-issued digital currency is very promising although the problems dealing with counterfeiting needs to be addressed.

Gold As Stable Coins

Any virtual currency backed with fiat or gold is considered as a stable coin which certainly is not as volatile as other cryptocurrency prices.

Stay tuned to find more latest updates on cryptocurrency.

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