The Reserve Bank of India governor, Shaktikanta Das, has reiterated his call for a ban on cryptocurrencies, citing them as speculative and akin to gambling activities. According to Das, cryptocurrencies cannot be considered financial products and should be treated as gambling due to their lack of underlying value. He warned that allowing digital assets to flourish would undermine the bank’s ability to control the money supply.
Das highlighted the threat posed by cryptocurrencies on the financial sector, emphasizing the absence of underlying value in these assets. He acknowledged the need for the government to support blockchain technology despite the call to ban cryptocurrencies. RBI has been advocating for the outlawing of private cryptocurrencies, warning of the potential for a financial crisis.
To counter the growth of cryptocurrencies like Bitcoin, the RBI is pushing for the introduction of a central bank digital currency (CBDC) and has released a concept note. However, this move has faced criticism from the crypto and blockchain industries in India for being regressive. Despite the push for a ban on cryptocurrencies, India remains a significant market for digital asset investors.
India has been advocating for a global approach to regulating cryptocurrencies due to the sector’s cross-border nature. There is still uncertainty surrounding crypto regulations in the country, but India continues to play a significant role in the digital asset market. The prevalent view within the Reserve Bank of India seems to be that cryptocurrencies pose a significant threat to the financial system and should be treated as speculative assets rather than financial products. Governor Shaktikanta Das continues to advocate for a ban on cryptocurrencies, citing their speculative nature and likening them to gambling activities.
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