The Governor of Reserve Bank of India (RBI), Raghuram Rajan, has said that an “active market intelligence” mechanism on cryptocurrency is needed at present to ensure that any illegal transaction happening in the country becomes easily traceable for the law enforcement agencies.
Rajan further disclosed that while RBI, at this stage, is not intervening in the digital currency market, yet it is watching it closely. Describing the digital currency market as “very very small” the governor of RBI also said that “our philosophy is that if it is small then let it develop, let us see how it works and then take a view. That was our attitude towards cryptocurrencies.”
He also said that the RBI had also voiced concerns over the pitfalls of the cryptocurrency in the past as well.
Further explaining the RBI’s stance with regards to various types of cryptocurrency, he opined that “new models will come. We have to examine and I would say we shouldn’t intervene strongly until we understand it better. But we have to watch it, which means we have to be much more active in gathering market intelligence and