RBI on Cryptocurrency: Cryptocurrency is used as a virtual digital asset in India. Various things are said about it, the government wants it to be banned, while many people demand that it be legalized in India. Now RBI itself has given its reaction on this and said that it will not legalize cryptocurrency in India.

Cryptocurrency will not be legalized
In fact, recently the Reserve Bank of India i.e. RBI has told a parliamentary committee headed by MP Bhartrihari Mahtab that virtual digital assets like cryptocurrency are a threat to an emerging economy like India and such assets should not be given legal recognition in the country. Apart from this, he said that China and Qatar are among those countries which have banned such financial activities, while Europe has allowed virtual digital assets in a very strict and regulated manner.

Also read: Petrol-Diesel News: Even after the decline in crude oil prices, petrol and diesel will become cheaper in India after two months, know why?

These will be the disadvantages of digital money
RBI has also submitted a small report during this period, in which it has stated that digital money can be used for some illegal activities like terror funding or narcotics smuggling. In such a situation, if it is legalized, it will become a little difficult to keep an eye on its use in foreign countries. In such a situation, RBI has insisted on not legalizing it.

Ban on use of crypto is necessary – RBI
During this meeting, it has been told by RBI that the use of crypto can shake the Indian economy. In such a situation, its use should be stopped as soon as possible. RBI said, ‘Precautionary strategies like banning crypto by preventing the use of crypto in payments and settlements, limiting risks to the banking sector and reducing connections to the system will help in keeping the financial system safe.’

Also read: Where is the 8th Pay Commission team preparing to go now, the remaining work is being completed before submitting the report to the government.

Indian Foreign Exchange: Amidst the impact of inflation on the pockets of people in India, RBI has announced a good news. According to the Reserve Bank of India (RBI), India’s foreign exchange reserves have strengthened. RBI Governor Sanjay Malhotra has told about this. He said that in the week ending May 28, the country’s foreign exchange reserves increased from $938 million to $682.32 billion.

Rupee became stronger despite fall
He further said that a week before this, the foreign exchange reserves had decreased by $ 7.51 billion to $ 681.38 billion. At the end of February this year, India’s foreign exchange reserves had reached a record level of $ 728.49 billion. However, due to rising tensions in West Asia and pressure on the rupee against the dollar, there was a decline in reserves for several weeks thereafter.

Also read: Oil-Gas Discovery: Treasure found in India’s neighboring country, oil and gas found in closed well

What do the latest RBI figures say?
According to the latest RBI data, the main reason for the increase in foreign exchange reserves was the increase in foreign currency assets (FCA). It increased by $3.12 billion to $546.15 billion. Forms the largest part of foreign exchange reserves. Apart from the dollar, these also include other foreign currencies like Euro, Pound and Yen. Changes in the value of these currencies also affect the foreign currency.

Gold reserve also decreased
At the same time, the country’s gold reserve has also decreased. In the week under review, it decreased by $ 2.18 billion to $ 112.6 billion. Apart from this, Special Drawing Rights (SDR) issued by the International Monetary Fund (IMF) remained stable at $ 18.75 billion. At the same time, India’s reserve position in IMF increased from $80 lakh to $4.82 billion.

Also read: Explained: How SEBI caught ‘paper’ business worth Rs 15 lakh crore in Rajesh Exports scam, why did LIC increase its stake?