Indian Central Bank Governor warns G20 of Crypto's potential to disrupt global financial stability
India's central bank governor reportedly said that crypto regulation was among the key topics discussed during the G20 meeting over the weekends.
The G20 finance ministers and central bank governors recognize that cryptocurrencies pose major risks to financial stability.
The statement you mentioned was made by the former Governor of the Reserve Bank of India (RBI), Shaktikanta Das, in October 2021 at a G20 meeting of central bankers and finance ministers.
Das expressed concerns about the potential risks posed by cryptocurrencies to global financial stability, stating that they have the potential to disrupt traditional banking and financial systems, and could be used for illegal activities such as money laundering and terrorism financing.
He also mentioned that cryptocurrencies are highly volatile and can lead to significant financial losses for investors, especially those who are not well-informed about the risks involved.
Reserve Bank of India Governor Shaktikanta Das expresses cryptocurrency during a G20 meeting of finance ministers and central bank governors in Bengaluru.
According to Shaktikanta Das "The media that there is now wide recognition and acceptance of the fact that cryptocurrencies or assets are major risks to financial stability monetary systems and cyber security."
He added that G20 delegates expressed interest in central bank digital currency (CBDC) pilot projects in India and other countries the publication conveyed India's central bank began its digital rupee pilots in November and December.
During the G20 meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to produce a joint paper on crypto to help formulate crypto policies.
IMF Managing Director Kristalina Georgieva has called for more crypto regulation stressing that banning should not be taken off the table, the IMF executive board published guidance for developing effective crypto policies.
The Reserve Bank of India (RBI) has reiterated its stance that cryptocurrencies not supported by the central bank should be completely prohibited. Nevertheless, the Indian finance minister has previously stated that effective banning or regulation of cryptocurrencies can only be achieved through international cooperation. Janet Yellen, the U.S. Treasury Secretary, has emphasized the importance of creating a robust regulatory structure for cryptocurrencies but has not proposed an outright ban on crypto activities.