In a recent interview with the Reserve Bank of India (RBI), the governor said that cryptocurrencies, such as bitcoin and ether, would cause the next financial crisis. According to the chief of the central bank, cryptocurrencies pose a huge financial and macroeconomic risk for India. Indian central bank governor Shaktikanta Das warned Wednesday about the dangers of cryptocurrencies. He said:
CRYPTOCURRENCIES HAVE … HUGE INHERENT RISKS FOR OUR MACROECONOMIC AND FINANCIAL STABILITY.
Das clarified that the RBI is most concerned about cryptocurrencies without underlying value, emphasizing that they should be banned since cryptocurrencies are “speculative”. Das said that non-government-issued cryptocurrencies, such as bitcoin and ether, are classified as “private” cryptocurrencies in India.
He Further said:
IT IS A HUNDRED PERCENT SPECULATIVE ACTIVITY, AND I WOULD STILL HOLD THE VIEW THAT IT SHOULD BE PROHIBITED … BECAUSE, IF IT IS ALLOWED TO GROW — IF YOU TRY TO REGULATE IT AND ALLOW IT TO GROW — PLEASE MARK MY WORDS, THE NEXT FINANCIAL CRISIS WILL COME FROM PRIVATE CRYPTOCURRENCIES.
It is also expected that the Indian government will discuss crypto regulations with the G20 countries. India’s finance minister Nirmala Sitharaman said the government is currently working on its crypto policy. She and U.S. Treasury Secretary Janet Yellen met last month to discuss crypto regulation. In the winter session of parliament last year, the Indian government scheduled a discussion of its cryptocurrency bill for the Lok Sabha, the lower house.
