Mark My WordsSurprise crisis prediction sends shockwaves through crypto markets as Bitcoin and Ethereum price swings wildly

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BitcoinBTC, Ethereum and other major cryptocurrencies are currently reeling from a dire 2023 warning.

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Bitcoin price fell back below $17,000 per bitcoin after surging above the closely watched level yesterday. Ethereum price printed a similar pattern as other major cryptocurrencies brace for a $65 billion earthquake.

Now India’s central bank governor has warned that the highly volatile crypto market will cause the next global financial crisis if action is not taken to clamp down on bitcoin, ethereum and other cryptocurrencies, even though the world’s largest asset manager predicts “the next generation”. for markets.

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“Our view is that it should be banned because if you try to regulate it and let it grow, please mark my words, the next financial crisis will come from private cryptocurrencies,” the Reserve Governor said. Bank of India, Shaktikanta Das, at a conference. reported by Coindesk.

In the summer of 2021, China moved to forcibly ban bitcoin, ethereum and other cryptocurrencies, kicking out those securing crypto-blockchains in exchange for freshly minted cryptocurrencies, a process known as mining.

However, crypto is hard to ban and China remains the 10th largest country for crypto adoption, according to the Chainalysis 2022 Global Crypto Adoption Index, up from 13th in 2021. India was ranked fourth , behind Vietnam, the Philippines and Ukraine.

“[Bitcoin, ethereum and other cryptocurrencies] have no underlying value,” Das said. “They carry huge inherent risks to our macroeconomic and financial stability. I have yet to hear a credible argument about the public good or the public purpose it serves.”

The market crash in bitcoin, ethereum and crypto over the past year has triggered serious warnings about the future of some of the industry’s biggest companies, as lawmakers and regulators have stepped up their scrutiny of technology.

Others have also warned that bitcoin and crypto could be the source of a major global financial crisis. Macquarie chief executive Viktor Shvets told Bloomberg last year that the next financial crisis could come from cryptocurrency mania, while the Bank of England’s deputy governor for financial stability warned that cryptocurrencies could trigger a global financial meltdown unless tough new regulations are introduced. .

In October, a U.S. Commodity Futures Trading Commission commissioner warned that growing interest in crypto from some of Wall Street’s biggest firms would pose “a risk to financial stability.” [to] increase and could reach the level of systemic risk”.

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Meanwhile, India is exploring the development of a crypto-inspired, government-backed central bank digital currency (CBDC), known as electronic rupee or digital rupee.

“You will see in the days to come that more and more central banks will embrace digital currencies and India has been at the forefront of the digital revolution in the current century,” Das said.

Earlier this year, India began taxing cryptocurrency, levying a 30% tax on earnings and a 1% deduction on each crypto transaction, prompting Binance CEO Changpeng “CZ” Zhao to calling the country a hostile environment in an interview with TechCrunch last month.

Over the summer, Das said he was “happy” to warn people not to invest in bitcoin or cryptocurrencies, saying he was “anecdotally” aware that some people pulled out of crypto “thanks to the caution and concern that emanated from the Reserve Bank.”

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