Once again, the authorities in India are expressing their displeasure with cryptocurrencies. During the Business Today Banking and Economy Summit event, Shaktikanta Das, Governor of the Reserve Bank of India – the country’s central bank – called for a general ban on digital assets in the country.
Cryptocurrencies should be banned due to their non-core market value. Like every asset, every financial product comes with some underlying value. Therefore, the value of the cryptocurrency is based on the “pretense” factor, Das said. “Cryptocurrency is a form of gambling with no intrinsic value. It is nothing more than a 100% speculative world,” he added.
Reports from Indian portals highlight that the Indian Central Bank has serious concerns about cryptocurrencies. This is because they believe that Bitcoin (BTC), Ether (ETH) and other digital assets can cause “financial instability.” Das also stated at the event last Friday that if India allows cryptocurrency trading, the RBI will likely fail to monitor the transactions.”
“The masquerade of cryptocurrencies as a financial asset is a totally misleading argument,” said Das.
BC in India: Cryptocurrency is a gamble
The Governor of the Reserve Bank of India (RBI) also stressed that the high and unexpected price volatility in the cryptocurrency market makes investing in it adventurous. So, for him, cryptocurrencies are like gambling — and they are banned in the country.
“Our country does not promote gambling. And if people still want to continue investing in this, then strict rules must be established for this. “Crypto is not a financial product, but pure gambling.”
The governor of India’s central bank has also expressed concerns about the dollarization offered by cryptocurrencies. According to him, the increase in dollarization “may work against the sovereign interest of the country.”
Although the Reserve Bank of India is against cryptocurrencies, the country does not yet have a regulatory framework for this market. But the government is working on a law to regulate the sector.
India is moving ahead with the CBDC project
On the other hand, Das has announced its support for Central Bank Digital Currencies (CBDCs), which has expressed support for calling it “the future of money.” The country has been moving ahead with its CBDC project, and in November last year, India launched a pilot program to widely test its digital currency in collaboration with nine banks.
As reported by CriptoFácil, during the first hours of the pilot program, several banks in the country used the Mint Road-enabled digital currency to settle approximately 50 Indian government bond transactions worth R$170 million.