HYDERABAD: Even as the debate on regulation over bitcoin and other cryptocurrencies is gathering steam, former RBI governor Duvvuri Subbarao said it is premature to take a decisive action because bitcoin is a technology innovation and regulation should not choke its growth in India.
“Bitcoin has started its journey when I was governor at RBI. Since then, central banks and regulators have been keeping an eye on it. But of late, it has become hugely popular creating a debate over its regulation. But, I feel it is premature to take a decisive action on bitcoin and other cryptocurrencies,” said Subbarao, delivering a lecture on the topic ‘RBI-Making a Difference to Everyday’s Lives’ in Hyderabad.
“The blockchain technology behind bitcoin has even other applications also. It’s a technology innovation. We need to strike a balance between regulation and growth of cryptocurrencies. Regulators should keep a close watch on them,” further said Subbarao, underlining that whenever investors and people’s money is siphoned off by ponzi schemes, everyone will look up to RBI for recourse.
Subbarao who spoke on a wide array of topics concerning the present financial situation also vocally supported the proposed Financial Resolution and Deposit Insurance (FDRI) Bill, questioning why banks should be bailed out by the government using public money.