Central Bank of India fears the transition of capturadora on the P2P platform

[Paha87]

The Central Bank of India has published its latest annual report, which includes a section dedicated to cryptocurrency. The reserve Bank of India outlines the risks associated with cryptocurrency and emphasizes the need to monitor the development of the industry in the expectation that some traders can move from centralized crypto-exchanges to peer-to-peer (P2P) exchanges.

                                                                             Monetary policy risks



The reserve Bank of India, the country's Central Bank, released its 268-page annual report on Wednesday, which States that "the cryptocurrency ecosystem may affect the existing settlement system, which in turn may affect monetary policy." The Central Bank explains:

Although cryptocurrency does not currently pose systemic risks, its growing popularity, leading to price bubbles, is causing serious problems for consumer and investor protection, as well as market integrity.


                                                              Transition to peer-to-peer network



The annual report also confirms that the government and the Central Bank are "closely monitoring the cryptocurrency."

Referring to a circular issued in April prohibiting all financial institutions from providing services to "any person or entity engaged in or located in virtual currencies", RBI repeated:

It is necessary to monitor developments on this front as some traders may move from exchanges to peer-to-peer mode, which may also include increased use of cash. Migration capabilities exchange cryptocurrency in darknet / cash and in offshore areas require attention.

Since the ban, RBI crypto exchanges in India have developed a number of P2P solutions to continue providing local crypto traders with services to buy and sell cryptocurrencies for Indian rupees.

                                                           RBI sees additional risks

 

RBI claims that cryptocurrencies are "subject to hacking and operational risk" as they are stored in e-wallets. In addition, the Central Bank sees "a high possibility of using cryptocurrency in relation to illegal activities, including tax evasion".

Emphasizing that there is no "established structure for cryptocurrency to address customer issues / dispute resolution, as cryptocurrency payments are made on a peer-to-peer basis without an authorized Central Agency that regulates such payments," RBI explains:

The lack of information on counterparties in such peer-to-peer anonymous / pseudo-anonymous systems may expose users to unintended violations of anti-money laundering laws as well as anti-terrorist financing laws.

In addition, the report mentions that a number of Central banks around the world are exploring the possibility of issuing their own digital currencies. "The Reserve Bank of India has established an interdepartmental group to study and provide recommendations on the desirability and feasibility of introducing the digital currency of the Central Bank," the report adds.

Link to information resource - https://altstake.io/news/cb-indii-opasaetsya-perehoda-kriptotreyderov-na-p2p-platformy