Indian central bank governor calls for crypto ban, champions CBDCs
India's central bank Governor Shaktikanta Das expressed private crypto assets like Bitcoin (BTC) could cause the next financial crisis and should be banned as they carry a huge inherent risk.
According to Shaktikanta das, cryptocurrencies have huge inherent risks that could endanger financial stability he added that the crypto assets should be banned because they do not have any value and are mainly used as speculative trading tools.
“(Crypto trading) is a hundred percent speculative activity, and I would still hold the view that it should be 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.”
The central bank governor express the country should embrace CBDC over crypto as it would reduce the need to print fiat currency and help fast-track international transactions.
India is working on CBDC project reports that revealed that the country's apex bank was looking to introduce a digital version of the Indian rupee.
India's crypto stakeholders have criticized the crypto stance.
Charles Hoskinson Cardano founder lamented how India's thought crypto stance has made it difficult for the blockchain network to penetrate its market
“India has been strongly anti-crypto, with numerous government attempts to outright ban and criminalize the use of crypto. I’d love to enter the market, but it seems to require someone intimately familiar with it.”
India has adopted a harsh stance towards the crypto industry the Asian country implemented 30% capital tax gains on crypto and a few others tax measures designed to discourage crypto trading activities.