Crypto should be banned by CoinEdition

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RBI Governor Shares RBI Stance: Crypto Should Be Banned RBI Governor Shaktikanta Das compared cryptocurrencies to gambling at the Business Today event on Friday. even be called an asset.

Reserve Bank of India (RBI) Governor Shaktikanta Das, during his Friday address at the Business Today Banking and Economy Summit, underscored RBI’s position, reiterating the importance of banning crypto trading. He added that the definition of crypto is “very unclear” and is analogous to “gambling”.

Notably, Das argued that there is no valid reason to recognize cryptocurrency as an “asset” or a “financial product”:

Some people call it an asset, while others call it a financial product and if so, it should be highlighted. In the case of crypto, there is no underscore.

Further, he highlighted the risk factor that would lead to RBI losing control of the money supply in the economy significantly. He backed up his ideas by pointing out that “20% of transactions are done through crypto,” which is neither authorized nor regulated by the central bank.

Further, Das explained the unreliability of cryptocurrencies, showcasing price volatility:

Price volatility is based on the imaginary concept where the price of a particular crypto can go up or down. Thus, anything that comes without any underlining whose ratings are entirely dependent on simulation is just 100% speculation or it can be downright called gambling.

Significantly, his words resonated with the bleak future of cryptocurrency, when he cited the example of the downfall of once-prominent crypto trading firm FTX. However, he incorporated the need to support blockchain technology as it has “so many other applications”, other than crypto trading.

The post RBI Governor Shares RBI’s Position: Crypto Should be Banned appeared first on Coin Edition.

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