{"id":157938,"date":"2022-05-20T14:52:22","date_gmt":"2022-05-20T14:52:22","guid":{"rendered":"https:\/\/precoinnews.com\/?p=157938"},"modified":"2022-05-20T14:52:22","modified_gmt":"2022-05-20T14:52:22","slug":"indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/","title":{"rendered":"India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced"},"content":{"rendered":"<p>Top Reserve Bank of India (RBI) officials have told a parliamentary committee that the adoption of cryptocurrencies can lead to the dollarization of the economy to some extent. It will undermine the central bank\u2019s ability and freedom to effectively implement monetary inputs and interventions. \u201cIt will seriously undermine the RBI&#8217;s capacity to determine monetary policy and regulate the monetary system of the country,\u201d an RBI official said.<\/p>\n<p>This is tantamount to compromising the sovereign interests of the country, they added.&nbsp;<\/p>\n<h2><strong>Dollarization of economy<\/strong><\/h2>\n<p>According to a news report by the Press Trust of India (PTI), top RBI officials have told the parliamentary committee that the adoption of cryptocurrencies can result in partly dollarization of the economy, which can be a challenge to the stability of the financial system.&nbsp;<\/p>\n<p>\u201cAlmost all cryptocurrencies are dollar-denominated and issued by foreign private entities, it may eventually lead to dollarization of a part of our economy which will be against the country\u2019s sovereign interest,&#8221; a&nbsp;media report quoted&nbsp;an RBI official as saying at the ongoing deliberations of the Parliamentary Standing Committee on Finance.<\/p>\n<p>The Parliamentary Standing Committee on Finance is chaired by former Minister of State for Finance Jayant Sinha. The RBI is a statutory body and reports to parliament. The panel is holding a comprehensive deliberation on economic and financial issues as part of its parliamentary responsibility.&nbsp;<\/p>\n<h2><strong>Crypto as a medium of payment<\/strong><\/h2>\n<p>RBI officials led by Governor Shaktikanta Das pointed out that digital coins have the potential to replace the INR as a medium of exchange both in domestic and international financial transactions. It can undermine the RBI\u2019s role in determining and implementing inputs and interventions for the country\u2019s monetary system.<\/p>\n<p>The officials of the banking sector regulator cautioned the panel that the threat to the financial system posed by cryptos is more serious than its potential to be used for money laundering, drug trafficking, and terror financing.&nbsp;<\/p>\n<p>Another argument that RBI officials put forward was how it can negatively impact the banking system. Cryptocurrencies can appear to be a more attractive option and people may divert their funds from banks to crypto assets that can leave the banks with lesser resources to lend.&nbsp;<\/p>\n<p>In recent weeks, Indian authorities are responding to cryptocurrency-related topics more frequently. During her visit to IMF Springs Meeting 2022 last month,&nbsp;Indian Finance Minister Nirmala Sitharaman spoke about cryptocurrencies&nbsp;at a panel discussion hosted by IMF and another event at a university. She said blockchain is full of potential but India won\u2019t rush to a decision on crypto adoption or regulation. More recently, she&nbsp;took umbrage at the anonymity feature&nbsp;of blockchain technology.<\/p>\n<p>Source: <a href=\"https:\/\/zycrypto.com\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top Reserve Bank of India (RBI) officials<\/p>\n","protected":false},"author":3,"featured_media":157937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"Top Reserve Bank of India (RBI) officials\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-20T14:52:22+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2022\/05\/India039s-RBI-Officials-Warn-of-Dollarization-of-Economy-if-Cryptos-Are-Embraced.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/\",\"url\":\"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/\",\"name\":\"India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2022-05-20T14:52:22+00:00\",\"dateModified\":\"2022-05-20T14:52:22+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Crypto\",\"item\":\"https:\/\/precoinnews.com\/category\/crypto\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/","og_locale":"en_US","og_type":"article","og_title":"India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced - Pre Coin News","og_description":"Top Reserve Bank of India (RBI) officials","og_url":"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/","og_site_name":"Pre Coin News","article_published_time":"2022-05-20T14:52:22+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2022\/05\/India039s-RBI-Officials-Warn-of-Dollarization-of-Economy-if-Cryptos-Are-Embraced.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/","url":"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/","name":"India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2022-05-20T14:52:22+00:00","dateModified":"2022-05-20T14:52:22+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/crypto\/indias-rbi-officials-warn-of-dollarization-of-economy-if-cryptos-are-embraced\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Crypto","item":"https:\/\/precoinnews.com\/category\/crypto\/"},{"@type":"ListItem","position":3,"name":"India&#039;s RBI Officials Warn of Dollarization of Economy if Cryptos Are Embraced"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/157938"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=157938"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/157938\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/157937"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=157938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=157938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=157938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}