India’s Central Bank Chief Insists Crypto Should Be Banned, Warns It Will ‘Undermine RBI’s Authority’ CryptoGlobe

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India’s central bank reiterated its stance on banning cryptocurrencies like bitcoin and ether. The Governor of the Reserve Bank of India (RBI) likened cryptocurrency trading to gambling. He warned that crypto would “undermine the authority of the RBI and lead to dollarization of the economy.”

RBI Governor Wants Crypto Banned

Governor of India’s central bank, the Reserve Bank of India (RBI), Shaktikanta Das, highlighted the bank’s stance on crypto at the Business Today Banking and Economy Summit on Friday.

Das pointed out that the central bank’s view is to completely ban cryptocurrencies like bitcoin and ether, India Today reported, quoting him as saying, “RBI’s stance on crypto is very clear. , it should be banned.

Emphasizing that cryptocurrencies have no underlying value, India’s central bank governor described:

Some people call cryptocurrency an asset, others call it a financial product, but every asset or financial product must have an underlying value. But cryptocurrency has no underlying value.

Das then expressed his opinion on the prices of the cryptocurrency market, stating that they are based on speculation only. He compared cryptocurrency trading to gambling.

“Anything whose valuation depends entirely on simulation is nothing but 100% speculation, or to put it bluntly, it’s gambling,” the RBI chief emphasized. “In our country, we don’t allow gambling. If you want to allow gambling, treat it like gambling and make the rules. »

Reiterating that he does not view crypto as a financial product, the central banker said:

Cryptocurrency masquerading as a financial product or financial asset is a completely misplaced argument.

Das also warned of the risks crypto poses to the Indian economy. He warned:

The Reserve Bank, being the monetary authority of the country as the central bank, will lose control of the money supply in the economy. This will undermine the authority of the RBI and lead to the dollarization of the economy.

RBI officials also warned in May last year that crypto could lead to dollarization of part of India’s economy “which will be contrary to the country’s sovereign interest.”

India currently does not have a regulatory framework for cryptocurrencies. The government has been working on a crypto bill for several years. Indian Finance Minister Nirmala Sitharaman said in October last year that the government hoped to discuss crypto regulation with G20 countries to establish a technology-driven regulatory framework for crypto assets.

What do you think of RBI Governor Shaktikanta Das’ statements? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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