India’s regulators have yet again made their opinions on crypto known. The latest to reiterate the country’s position on crypto is the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, who has called for a complete ban.
The Governor of the RBI, Shaktikanta Das, while addressing the Business Today Banking and Economy Summit on Friday, again made the central bank’s stance on cryptocurrencies clear, reiterating the significance of banning the industry. Das described the crypto trade as “nothing but gambling” adding that the definition of crypto remains “very unclear.” Das went as far as to say their perceived “value is nothing but make-believe.” The Governor used very dismissive language while describing cryptocurrencies and argued that there is no valid reason to acknowledge crypto as an “asset” or even a “financial product.”
Das also asserted:
Since we don’t allow gambling in our country, and if you want to allow gambling, treat it as gambling and lay down the rules for gambling. But crypto is not a financial product.
The Governor warned that legalizing cryptocurrencies would lead to more dollarization of the economy adding that crypto masquerading as a financial asset is a misplaced argument. Das also referred to the risk that could see the RBI lose control over the country’s money supply. The substantiate this argument he mentioned the fact that “20 percent of transactions are happening through crypto,” none of which are authorized or regulated by the central bank. Governor Das further made reference to the age-old argument against cryptocurrencies – their price volatility, noting:
The volatility in prices is based on the make-believe concept where a particular crypto’s price can go up or down. So, anything that comes without any underline whose valuations is entirely dependent on make-believe is just 100 percent speculation or it can be bluntly termed as gambling.
The Governor also recently made a bold statement saying that cryptocurrencies should be banned, and if allowed to grow, might cause the next financial crisis.
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