India, July 3 -- Reiterating its long-standing opposition to virtual digital assets (VDAs), the RBI told a parliamentary panel that cryptocurrencies pose a threat to the economy and should not be legalised.

The central bank told the parliamentary standing committee on finance that countries like Qatar and China have already banned any cryptocurrency activity, while countries in Europe have issued stringent regulations to govern the asset class, PTI reported.

In India, cryptocurrencies operate in a regulatory grey area, with no dedicated legal framework in place despite the country being one of the world's largest adopters of VDAs.

The discussions took place during the committee meeting held yesterday on the topic, 'A Study on Virtual D...