Indian Central Bank Chief Insists Crypto Should Be Banned — Warns ‘It Will Undermine Authority of RBI’

The Indian central bank has restated its position in favor of outlawing digital currencies like bitcoin and ether. The governor of the Reserve Bank of India (RBI) compared bitcoin trading to gambling. He said cryptocurrencies “would weaken the RBI’s authority and cause the economy to become dominated by the dollar.”

RBI’s Governor Wants Crypto Banned

Shaktikanta Das, governor of India’s Reserve Bank of India (RBI), highlighted the bank’s position on cryptocurrencies during the Friday Business Today Banking and Economy Summit.

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

The governor of the Indian central bank highlighted the fact that cryptocurrencies have no inherent value by describing:

Some people call cryptocurrency an asset, some call it a financial product, but every asset or financial product needs to have an underlying value. But cryptocurrency does not have any underlying value.

According to Das, the market pricing for cryptocurrencies is solely based on speculation. Trading cryptocurrencies as compared to gambling by him.

The Indian central bank director emphasized that “anything whose valuation is based on make-believe is nothing but 100% speculation, or to put it clearly, it is gambling.” We don’t allow gambling in our country. Treat gambling like gambling and set laws if you wish to allow it.

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

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

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

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

In May of last year, RBI officials issued a similar caution, stating that crypto could result in the dollarization of a portion of the Indian economy, “which will be against the country’s sovereign interest.”

At the moment, there is no cryptocurrency regulatory structure in India. For some years, the government has been working on a cryptocurrency bill. To create a technology-driven legal framework for crypto assets, the Indian government plans to discuss crypto legislation with the G20 nations, according to Nirmala Sitharaman, the country’s finance minister, in October of last year.

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

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