RBI Governor Shaktikanta Das Warns Investors Investing On Cryptocurrencies

Shaktikanta Das, the governor of the Reserve Bank of India, has reiterated his concerns about cryptocurrencies, calling them a threat to any financial system until they are regulated.


Shaktikanta Das, the governor of the Reserve Bank of India, has reiterated his concerns about cryptocurrencies, calling them a threat to any financial system until they are regulated. During an event, the Governor of the Reserve Bank of India presented his thoughts.

He said that cryptocurrencies pose a severe threat to the country’s macroeconomic and financial stability, and that the number of people trading on them, as well as their claimed market value, are both inflated.

The remarks come amid allegations that the government is considering regulating digital currencies through a measure that might be introduced during the next Budget.

Das has also voiced his opinions ahead of the RBI’s internal panel report on the contentious matter, which is set to be released next month.

here’s the interview video posted on the micro-blogging site.

Cryptocurrencies are a major source of concern for the RBI in terms of macroeconomic and financial stability. The government is actively considering the matter and will make a decision.

But, as the central banker, we have major concerns about it, and we have raised it numerous times,” Das said at a PTI event.

The RBI chief, who has been a vocal opponent of cryptocurrencies, also questioned the country’s genuine crypto investor population.

This was in response to a recent article claiming that over ten crore Indians possess cryptocurrency. Several local crypto sites have also scoffed at the report, arguing that the figure is less than 2 crore.

“I am not sure about the veracity of these numbers. Of course my view may not be fully right as we don’t get full information about these currencies as they aren’t regulated by us or by any other central bank. But I still think the number of investors look clearly exaggerated as bulk of them, say over 70 per cent, have invested only about Rs 1,000 each in cryptocurrencies,” Das told.

RBI LAUNCHES ITS CBDC

The RBI announced its intention to develop an official digital currency for India earlier this year, when the government took a tougher stance on cryptocurrencies. The RBI’s chief stated at the time that a committee was deciding on the model of the central bank’s digital currency.

Investor Abhishek Basumallick wrote on Twitter that, “The RBI has serious concerns about crypto from the macroeconomic and financial stability points of view.”

A Twitter user named Anmol Joshi later pointed out that the government still hasn’t banned the use of cryptocurrency and the on going Ad campaigns are proof of it.

Indian cryptocurrency investments have surpassed $10 billion in the last few months. According to data provided by CREBACO, a research organisation, around 105 million persons, or 7.9% of Indians, have invested in cryptocurrencies through Indian exchanges.

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