Global crisis due to collapse of cryptocurrencies-head RBI
2022.12.22 08:29
Global crisis due to collapse of cryptocurrencies-head RBI
Budrigannews.com – When discussing the cryptocurrency industry at a recent conference, the governor of the Reserve Bank of India (RBI), Shaktikanta Das, asserted that “private” crypto will be the cause of the next financial crisis.
Das argued, in a speech delivered on December 21 at the Business Standard BFSI Insight Summit, that private cryptocurrencies, also known as those that are not issued by governments or banks, have no backing and are merely instruments for speculation.
They lack any intrinsic value. They have immense intrinsic dangers for our macroeconomic and monetary security. He stated, “I have yet to hear any credible argument regarding what public good or public purpose it serves.”
Das went on to add that a complete crypto ban in India would be the best course of action moving forward:
“It [private cryptocurrency trade] is a hundred percent speculative activity, and I would still hold the view that it should be prohibited … because, if it is allowed to grow, if you try to regulate it and allow it to grow, please mark my words, the next financial crisis will come from private cryptocurrencies.”
Featuring instances of such gamble, the RBI head highlighted the new FTX collapse drove by the newly removed Sam Bankman Broiled.
He stated, “I don’t think we need to say anything more about our stand after the developments over the last year, including the latest episode around FTX.” He also mentioned the events surrounding FTX.
These remarks are yet another instance in which a prominent figure in politics or finance has attributed FTX’s demise to the crypto industry. In particular, many U.S. senators have taken the opportunity to criticize digital assets in recent weeks.
Naturally, Das spoke highly of central bank digital currencies and emphasized that the RBI is actively pursuing the launch of its digital rupee.
“You will find in days to come an ever increasing number of national banks will embrace computerized monetary forms and India has been in the front of the advanced upheaval in the ongoing 100 years,” he said.
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The Reserve Bank of India has long held skepticism regarding cryptocurrency and has frequently questioned its value. The bank had previously placed the sector at the bottom of its list of systemic risks as recently as June, and Das’ most recent remarks demonstrate that the sentiment is only getting worse.
