Cryptocurrency craze have grown by leaps and bounds in the recent years. It all has to do with exceptional returns that these coins have generated for its investors in the quickest times possible and success stories attached to them. In India, there were apprehensions as far as trading in cryptocurrencies were concerned. This doubt found its root in Reserve Bank of India (RBI) 2018 circular that barred banks and financial institutions from indulging in business with crypto exchanges. However, the Reserve Bank of India recently came up with clarifications and asked these financial institutions, including banks, not to cite its old circular. Well, the RBI had to come up with clarifications as the Supreme Court had struck down RBI order in 2020, and these institutions were still citing its old order, warning their customers against trading in cryptocurrency.
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RBI Stance same as 2018 circular: Shaktikanta Das
Meanwhile, reiterating its position, the RBI said it maintains the same stance what it said in 2018. Reserve Bank of India Governor Shaktikanta Das continues to have major concerns about cryptocurrencies and the same has been conveyed to the government. “There has been no change in its position on virtual currencies,” said Das during a press conference to announce outcomes of monetary policy committee (MPC) meeting.
Why RBI had to come out with the clarification
As on why the RBI had to come out with the clarification when it maintained the same position on digital coins, RBI Governor said, ” We wanted to set the record straight that the circular has been made invalid. Our circular clarifies our position very clearly that the Supreme Court had set aside our 2018 circular. It came to our surprise that banks were citing the old circular in correspondence with customers,” said the RBI Governor.
Top cryptocurrencies prices
Meanwhile, top cryptocurrencies, including Bitcoin, were seen making recovery after the market nearly corrected around 8 percent on Friday, as per CoinSwitch data. The global crypto market was up 4 per cent at 12 pm on Saturday.
Bitcoin has seen a bounce back and was up 2 per cent after recovering over 2 per cent. It was trading for Rs 29,20,022. Dogecoin was also trading in green and has gained nearly 3 percent. Dogecoin price at 12 pm was Rs 30.12. Number 2 coin, Ethereum, also trading above 5 per cent at Rs 2,15,273. Popular meme coin Shiba Inu was trading at Rs 0.000694, up 2.81 per cent showed Wazirx daily chart.