The governor of India’s central bank has once again expressed skepticism towards cryptocurrencies, saying the asset is “nothing but gambling” and calling for a comprehensive ban.
Speaking at a Business Today event, Shaktikanta Das Claimed Cryptocurrencies have no intrinsic value and their alleged “value is nothing but belief.” Kryptos isn’t even a tulip, he added, pointing to the famous Dutch tulip mania explosion in the early part of the last century. ,
“Every asset, every financial product must have some underlying (value), but in the case of crypto there is no underlying…not even a tulip…and the growth of the market value of crypto is based on trust.”
Das said that crypto is “100 percent speculation or to put it very bluntly, it is gambling.” He then argued that since gambling is banned in India, crypto should not be allowed either – or the government should make rules for gambling.
Another reason why the Reserve Bank of India (RBI) should ban cryptos is that they pose a threat to central banks, Das said, noting that if cryptos are adopted in the mainstream, they could become a threat to central banks. Will affect the ability to decide on monetary policy. he said:
“Please believe me, these are not empty alarm signals. A year back in the Reserve Bank we said that this whole thing is likely to end sooner or later. And if you look at the development of last year, the climax in the FTX episode , I think I don’t need to add anything more.
Das, on the other hand, expressed his support for Central Bank Digital Currencies (CBDCs), calling them the “future of money”. As mentioned, India launched a pilot program Its digital currency in collaboration with nine banks in November last year.
Despite its push for a CBDC, the RBI has long maintained a hardline stance towards digital assets, arguing that the nascent asset class has no inherent value. The central bank has consistently warned investors and the government against cryptocurrencies, citing volatility and the risk of fraud and scams.
RBI in July last year asked The Indian government banned cryptocurrencies in the country, citing the “volatile” impact of this asset class on monetary stability.
India, which currently holds the presidency of the G20, is also planning to use the opportunity Coordinate global crypto regulation, As reported, India’s federal economic affairs secretary Ajay Seth said in December last year that the G20 countries would study the implications of cryptocurrencies for the economy, monetary policy and banking sector to inform a policy consensus.
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