RBI chief: Cryptocurrencies will detonate ‘next financial crisis’ and should be banned

Shaktikanta Das, governor of the Reserve Bank of India, said that if private cryptocurrencies such as Bitcoin continue to grow, it may detonate the “next financial crisis”, so cryptocurrencies should be banned altogether.

Shaktikanta Das reiterated that the RBI believes that private cryptocurrencies should be banned, but not digital currencies issued by the central bank. He said at a public event on Wednesday:

Cryptocurrency trading is 100% speculation, I insist that cryptocurrency should be completely banned because if you try to regulate it, you allow it to continue to grow, mark my words, the next financial crisis will be caused by private crypto caused by currency. They have no underlying value. They pose substantial potential risks to our overall economic and financial stability.

When Shaktikanta Das made the above remarks, the Reserve Bank of India is trying to launch a central bank digital currency (CBDC) – “Digital Rupee”, which will start a pilot test on December 1 for retail merchants in specific cities, and open some people to use their mobile phones. Apps and digital wallets spend in digital rupees.

In this regard, Shaktikanta Das is more optimistic. He said: “In the not-too-distant future, you will see more and more central banks will accept digital currencies (referring to CBDC), and India has been leading the way in digital currencies. cutting edge. This is the digital revolution of this century.”

At present, the Indian government is promoting cryptocurrency legislation to ban some cryptocurrency activities, and at the same time creating a legal framework for the central bank digital currency.