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RBI Governor Shaktikanta Das Still Highly Skeptical Of Cryptocurrencies
The Reserve Bank of India (RBI) has issued a stern warning regarding the use of Bitcoin and other digital currencies. RBI Governor Shaktikanta Das Cites FTX Crash Declares These Unstable Financial Instruments ‘Nothing But Gambling’, Their Values Based Completely On ‘Fiction’ I declared.
Speaking at a Business Today event, Das repeatedly launched a salvo against cryptocurrencies, arguing that every asset or financial instrument must have some potential value.
According to Das, unlike tulipmania in the early 20th century, cryptocurrencies have no real value. He specifically emphasized that cryptocurrencies are “100% speculation.”
Das expressed concern about the increasing digitization of payments and the risks posed by the tech giants that dominate payment networks.
He also argued that given that many economies rely heavily on their national currencies for currency control, giving cryptocurrencies too much influence would be a huge threat to the economy, as most of them are denominated in dollars. It could lead to “dollarization,” he said.
As a result, rather than misclassifying cryptocurrencies as legitimate financial instruments, he proposed banning them outright.
As reported by U.Today, Das expressed serious concerns about the potential impact of cryptocurrencies on India’s financial stability at the height of the November 2021 cryptocurrency bubble.
It remains to be seen what policy changes will be made following Das’ statement. Either way, it’s going to be a turbulent time ahead for India’s cryptocurrency industry, which continues to be plagued by uncertainty.
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