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

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

India’s central bank has 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 “will undermine the authority of the RBI and lead to the dollarization of the economy.” RBI’s Governor Wants Crypto Banned

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

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

Emphasizing that cryptocurrencies have no underlying value, the Indian central bank governor described: 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.

Das proceeded to express his opinion on the market prices of cryptocurrencies, stating that they are based on speculation alone. He likened cryptocurrency trading to gambling.

“Anything whose valuation is dependent entirely on make-believe is nothing but 100% speculation, or to put it bluntly, it is gambling,” the RBI chief stressed. “In our country, we don’t allow gambling. If you want to allow gambling, treat it as gambling and lay down the rules.”

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.

RBI officials similarly warned in May last year that crypto could lead to the dollarization of a part of India’s economy “which will be against 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 hopes to discuss crypto regulation with the G20 countries to establish a technology-driven regulatory framework for crypto assets. Tags in this story indian central bank, indias central bank, RBI, rbi crypto, RBI crypto warning, rbi governor, Shaktikanta Das crypto, Shaktikanta Das crypto warning, Shaktikanta Das cryptocurrency

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

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Korean Court Orders Crypto Exchange to Pay Customers Suffering From Service Outage REGULATION | 8 mins ago US Lawmakers Create "Congress" First Ever" Digital Assets Subcommittee REGULATION | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin Network’s Mining Difficulty Rises to All-Time High, Making Block Discovery More Challenging Next articleReport: Egyptian Pound Reaches New Low Against US Dollar Despite Flexible Exchange Rate Regime Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design