17 Jan

RBI Strongly Opposes Crypto as FTX Crash Proves Its Detrimental Nature

• The Central Bank of India has been displaying strong hostility towards crypto for a long time now.
• The RBI governor, Shaktikanta Das, has again expressed severe concerns about regulating the industry.
• The RBI’s governor, Shaktikanta Das, has stressed that the FTX crash has proven how cryptocurrency being a speculative industry is detrimental to the economy.

The Reserve Bank of India (RBI) has been displaying strong hostility towards the cryptocurrency industry ever since its popularity rose in India. This has kept crypto investors and enthusiasts on their guard as the annual budget date draws closer.

Shaktikanta Das, the RBI governor, has been vocal about his concerns regarding the regulation of the industry. At the Business Today Banking and Economy Summit, he argued that private digital assets should be banned as it holds a ‘make-believe factor’ and is nothing but a ‘100 percent speculation world.’ He has repeatedly referred to cryptocurrency as an ‘unstable instrument’ and ‘nothing but gambling.’

The situation has been made worse due to the crash of FTX. Das has said that this incident has proven how the speculative nature of cryptocurrency can be detrimental to the economy. Previously, the Indian government had warned that the influx of private digital assets could cause the dollarization of the economy, which is not ideal for the nation.

In response to these events, the Central Bank of India has now issued a stern warning against the use of Bitcoin and other virtual currencies. They have stated that these assets hold no intrinsic value whatsoever and should be avoided.

It is clear that the RBI is intent on regulating the cryptocurrency industry and will continue to express their concerns until the matter is resolved. This could potentially have a major impact on the crypto market in India and it remains to be seen what changes the central bank will implement in the near future.