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In 2018, the Reserve Bank of India banned any operations with digital currencies in the country. However, the Supreme Court recognized the decision of the regulator as illegal and annulled it.
After that, the Indian authorities began to work on creating a regulatory framework for the cryptosphere. The government has chosen the most stringent version of the legislation. As a result, investor activity on the exchanges has sharply decreased.
This week, the head of the Central Bank of India, Shakticanta Das, in an interview with ET Now, said that the regulator continues to advocate a complete ban on bitcoin and other virtual currencies.
According to the official, the authorities managed to weaken the interest of citizens in digital assets thanks to a broad campaign to inform the population about the speculative and criminal nature of such tools.
The head of the Central Bank noted:
I’m glad we sent warning signals to people. I know that many citizens did not invest in cryptocurrencies or withdrew from them, thanks to the concerns and appeals of the Reserve Bank.
The regulator is confident that the use of digital currencies poses great threats to the financial sector of the state.
The only and correct solution will be an official ban on such tools, the representative of the Central Bank summed up.
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