Reserve Bank of India Governor says cryptocurrencies will cause a global crisis

The Governor of the Reserve Bank of India shared his opinion on the future of cryptocurrencies and their impact on the financial system around the world. According to Shaktikant Das, if private digital assets are regulated in the way that the leading banking institutions in the US and EU require, they will cause the next financial crisis.

According to Das, private tokens that are not issued by a bank or government are not backed by anything and are a tool for speculation. «Private cryptocurrencies have no value and pose risks to the financial stability of the world. I don’t have a single solid argument as to what public good they serve,» Shaktikanta Das shared his own point of view.

According to the Reserve Bank Governor, a ban on cryptocurrencies in India would be the best solution. «Trading in cryptocurrencies is 100% speculative, and I believe it should be banned,» Shaktikanta Das said.

However, the financier is positive about CBDC, which the Reserve Bank of India proposed to test back in October. The main motivation for the launch of CBDC, according to the bank’s representatives, is the reliability and liquidity of payments, as well as the possibility of introducing it into the national financial system. The digital rupee will reduce the operating costs of cash management in India.

Most Indians support the introduction of the digital rupee, as more than 115 million citizens already own cryptocurrencies. At the end of August, KuCoin cryptocurrency exchange published its report on the use of cryptocurrencies in India. The results showed that 54% of respondents plan to convert most of their capital into cryptocurrency, despite the strict taxation rules established by Indian law.