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Cryptography: RBI offers three options for regulating digital currencies

02/01/2023
Source : ORISHAS FINANCE
Categories: Economy/Forex

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La Reserve Bank of India (RBI) studied the various options at the level mondial dans l' intention to design a common approach to regulating or “possibly prohibiting” unsecured crypto assets.

The central bank said in its recently unveiled financial stability report that developing a framework for the global regulation of unsecured crypto assets was one of the priorities of the Indian presidency of the G20. Indeed, according to the report, “under the Indian presidency of the G20, one of the priorities is to develop a global regulatory framework, including the possibility of prohibition, unsupported crypto assets, stablecoin, and DeFi.”

RBI proposed three options for regulating digital currencies to go a long way. According to the report, a first option & was to ban crypto assets. He cited the justification of “almost negligible” real use cases and different regulatory oversight mechanisms across the territories for such a decision. The second option was the application of the principle of “same risk, same regulatory outcome”, in order to subject crypto exchanges to the same regulations applicable to traditional financial intermediaries and exchanges. Then finally, the third, which consisted in letting it implode and making it systemically irrelevant.

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