RBI Governor Shaktikanta Das said cryptocurrencies have no fundamental value.
India’s central bank governor Shaktikanta Das, a longtime opponent of cryptocurrencies, took another edge against digital tokens, saying they have no fundamental value and are a threat. threat to financial stability.
“Investors in cryptocurrencies should remember that they are investing at their own risk. They should also remember that cryptocurrencies are not fundamental, not even tulips,” said the director of the Reserve Bank of India on Thursday, referring to the Dutch tulip bulb market bubble in the 20th century. 17.
Governor Das’ comments come days after the Indian government removed uncertainty about the legal status of cryptocurrency trading. In his February 1 federal budget speech, Finance Minister Nirmala Sitharaman announced high taxes on such transactions, effectively treating them as winnings from activities like chess silver though not recommended. Regulations are pending.
For its part, the RBI has taken a strong stance against private digital currencies. Since cryptocurrencies are designed to be traded freely and anonymously, the central bank is worried about capital controls, especially since it has a tight control over the Indian rupee that has partially convertible. Issues such as money laundering and terrorist financing have been raised as a concern.
“Private crypto or whatever you call it is a major threat to our macroeconomic stability and financial stability,” Das said.
To mitigate the impact of cryptocurrencies somewhat, RBI is developing its own digital rupee, although Das declined to give a firm timeframe on when it will be ready. Regarding the budget, Sitharaman said a central bank digital currency will be ready at some point in the next financial year starting on April 1.
“We are making progress on CBDCs after careful, thorough testing because of the risks,” he said. “The biggest risks are cybersecurity and the possibility of counterfeiting. We should absolutely stop that.”
