New Delhi, July 3 -- Opposing the legalisation of virtual digital assets (VDAs) such as cryptocurrencies in the country, the Reserve Bank of India (RBI) on Thursday informed a Parliamentary panel that these assets pose a threat to emerging economies like India and should remain prohibited.

The Parliamentary Committee's meeting comes at a crucial time as India seeks to balance the promotion of financial innovation with the need to safeguard monetary and financial stability, ANI reported. The meeting was to review the progress of India's Central Bank Digital Currency (CBDC), more commonly known as the digital rupee.

As the RBI strengthens its pilot initiatives for sovereign digital currency, privately issued cryptocurrencies and other VDA...