governor of reserve Bank of India (RBI), Shaktikanta Das suggested that cryptocurrencies should not be regulated – they should be banned altogether, lest they lead to the next financial crisis.
Speaking at the Business Standard BFSI Insight Summit on Wednesday, and asked about the war on crypto IndiaSlave Said that “there is no war or anything like that.”
While different countries have different views on how to deal with crypto, he said,
“We are of the view that it should be banned because if it is allowed to grow – and if you try to regulate and allow it to grow – please mark my words, the next financial crisis will come from private cryptocurrencies. “
He further stated that it is the central bank’s position that “private” cryptocurrencies – meaning, those not issued by governments and/or banks – carry “enormous” inherent risks to the country’s microeconomic and financial stability. Das argued that naming the events witnessed this year in the industry, especially the decline ftx Prove the point of exchange, bank. “I don’t think we need to say anything more about our position,” he said.
“I think time has only proved what cryptocurrencies are worth today,” Das said, referring to the ongoing market downturn this year.
Three Points Against Crypto Regulation
There is a lot of talk about regulating crypto, Das said, but he argued that one has yet to come up with an explanation. How It has to be properly regulated.
In this regard, he listed three points working against crypto and those trying to regulate it:
- The origins of cryptocurrencies lie in the idea of bypassing and beating “the system”;
- “Unlike any other asset,” they “have no inherent [value] whatever” and there is no credible argument as to what public good/purpose they serve;
- The term “private cryptocurrency” is a trendy way of describing what is otherwise 100% speculative activity.
Digital money is the future, not just crypto
India is one of a growing number of countries working on their own central bank digital currencies (cbdc,
Commenting on India’s digital rupee journey, Das said some central banks have already started pilot projects, but in the coming days, “more and more central banks will adopt digital currencies.”
The Governor said that India has been at the forefront of the digital revolution in this century, adding that,
“It’s not a question of missing out or fear of losing […] Competing offering for a private cryptocurrency. I think this is how the world is going to evolve, this is how the digital world is going to shape up in the coming days and years and we have to be ready for it.”
as ReportedThe Central Bank announced that India will start the first pilot for retail digital currency on December 1, and four local banks – State Bank of India, ICICI Bank, yes bankAnd IDFC Will participate in the initial phase of the pilot in four cities: Mumbai, New Delhi, Bengaluru and Bhubaneswar. Bank of Baroda, Union Bank of India, HDFC bankAnd Kotak Mahindra Bank Will join the pilot later, it said.
During the RBI’s monetary policy press conference on December 7, a week after the pilot began, Das Said He,
“The experience of the wholesale CBDC pilot has been very satisfactory. […] Overall, the technology has worked. The process has worked overall, and market participants and others are very happy that there is no need for collateral. […] So, the response to the first pilot on the wholesale CBDC has been very satisfactory, but there are some learnings, and we are working on those.”
You can watch the full interview here:
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learn more:
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