RBI Governor Shaktikanta Das on Wednesday said that cryptocurrencies are a “serious concern”. “As a regulator, we have serious concerns (on cryptocurrencies) from the microeconomic and financial stability point of view,” Mr Das said today. 

He said that the number of participants in the crypto market was “exaggerated”, but in volume terms, the number was “definitely increasing”. Mr Das added that a bulk of the investors in the crypto market had invested a minimal amount like Rs 1,000 or Rs 2,000. 

The RBI had submitted a detailed report to the Central government on cryptocurrencies, Mr Das said today during the Business Standard’s BFSI Summit, adding that it was “under active consideration of the government”. 

The RBI governor refused to comment when asked if the RBI would regulate the crypto industry whenever the government decided to regulate it. 

Earlier, in May also, Mr Das had said that the central bank had major concerns on cryptocurrencies traded in the market. “Central bank digital currency is one thing. The cryptocurrencies which are traded in the market are something else. Both RBI and government are committed to financial stability. We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government,” Mr Das had said. 

He also added that the RBI was working on a digital version of a fiat currency and was currently “assessing the financial stability implications of introducing such a Central Bank Digital Currency (CBDC)”. 

Despite the government’s and the central bank’s concerns, excitement around cryptocurrencies continues to grow and more people are investing in crypto assets. In fact, the ecosystem saw its first unicorn in CoinDCX in August and another in CoinSwitch Kuber in October.