Indian Central Bank Warns About Crypto Causing the Next Financial Crisis
The Reserve Bank of India (RBI) Governor and Chief Shaktikanta Das will cause Next Financial Crisis if they're not banned.
The central bank chief added that cryptocurrencies pose huge inherent risks to India's macroeconomic and financial stability.
Shaktikanta Das warned about the danger of cryptocurrency the central banker cautioned.
Cryptocurrencies have … huge inherent risks for our macroeconomic and financial stability.
The RBi is concerned about cryptocurrencies having no underlying value he clarified emphasizing that crypto is 'speculative' and should be banned.
Indian authorities refer to any non-government-issued cryptocurrencies like Bitcoin and Ether as private cryptocurrencies commenting on crypto trading.
"it is a hundred percent speculative activity and i would still hold the view that it should prohibited because if it is allowed to grow if you try to regulate it and allow it to grow please mark my words the next financial crisis will come from private cryptocurrencies."
India is trying to launch its own central bank digital currency (CBDC) the RBI started wholesale and retail digital rupee pilots.
Shaktikants das said that CBDC can expedite international money transfers and reduce the need for logistics including printing notes last month RBI Deputy Governor T Rabi Sankar claimed that India's central bank digital currency can do anything cryptocurrencies can do.
The Indian government also working on the country's crypto policy earlier this week, the government provided Lok sabha the lower house of India's parliament with an update on its cryptocurrency bill that was scheduled to be discussed in the winter session of parliament last year.
Furthermore, India's finance minister Nirmala Sitharaman has shared that the government plans to discuss crypto regulations with the G20 countries to establish a technology-driven framework for crypto assets. she and U.S. Treasury secretary Janet Yellen discussed crypto regulation during the ninth India U.S Economic and financial partnership meeting.