Global: ‘Crypto Will Undermine RBI’s Authority’- Governor

The Governor of the Reserve Bank Of India (RBI), Shaktikanta Das, has yet again expressed the bank’s unwillingness to allow cryptocurrencies to thrive in the country.

The RBI Governor stated this during the Business Today Banking and Economy Summit held on Friday (January 13, 2023).

The RBI’s warnings against the cryptocurrency have been recurrent, despite the country’s government proposing to establish a regulatory framework for crypto assets.

Das, while speaking during the summit likened cryptocurrency trading to gambling.

He also expressed concern that cryptocurrency could put the RBI out of control of the supply of money in the economy.

“The Reserve Bank, being the monetary authority of the country as the central bank, will lose control over the money supply in the economy … It will undermine the authority of the RBI and lead to the dollarisation of the economy.

“RBI’s position on crypto is very clear — it should be banned.

“Cryptocurrency masquerading as a financial product or a financial asset is a completely misplaced argument.

“Some people call cryptocurrency an asset, some call it a financial product, but every asset or financial product needs to have an underlying value. But cryptocurrency does not have any underlying value.

“Anything whose valuation is dependent entirely on make-believe is nothing but 100% speculation, or to put it bluntly, it is gambling,” the RBI chief stressed. “In our country, we don’t allow gambling. If you want to allow gambling, treat it as gambling and lay down the rules,” he said.