The governor of the Reserve Bank of India slammed cryptocurrencies and claimed that the next financial crisis in India will occur because of cryptocurrencies.
The Reserve Bank of India (RBI) is the central bank of India and also regulates Banks in the country. Since the beginning, RBI showed a negative stance toward the crypto sector & also many times proposed the idea to ban cryptocurrencies from India fully.
On 21 Dec, During a banking and finance event, Shakti Kant Das, governor of RBI, said that regulation of cryptocurrencies under rules & laws will not be sufficient to prohibit the risks associated with cryptocurrencies.
Further, the RBI governor claimed that the next financial crisis in India will occur because of the cryptocurrencies because crypto assets are backed by nothing & also highly volatile in nature.
“Mark my words, the next financial crisis will come from private cryptocurrencies… they have no underlying value, and they have huge inherent risks for our macroeconomic and financial stability,” the RBI governor said.
In India, private cryptocurrencies are those virtual assets that are not issued by the Central Bank. Recently RBI launched the digital Rupee, or say e-Rupee, with four leading Indian Banks.
It is worth noting that India assumed the G20 presidency in December of this year and the leaders talked about the global Crypto regulatory framework.
In mid of 2018, RBI ordered all the banks to stop providing Banking services to any crypto company but after a few years, the supreme court of India ordered to revoke the RBI’ crypto banking ban. At present, the Indian finance ministry is working on a crypto bill to regulate the Cryptocurrency sector.