The Crypto vs Reserve Bank of India (RBI) tussle revives as the governor Shaktikanta Das once again warned against the dangers of cryptocurrencies.
Calling cryptocurrencies, a clear danger, Das said that commodities that derive value on the basis of make-believe, without any underlying, are just a result of speculation.
Shaktikanta Das said, “We must be mindful of the emerging risks on the horizon. Cryptocurrencies are a clear danger.”
“While technology has supported the reach of the financial sector, its benefits must be fully harnessed, its potential to disrupt financial stability has to be guarded against. As the financial system gets increasingly digitalised, cyber risks are growing and need special attention,” Das said in the foreword to the RBI’s Financial Stability Report, June 2022.
He further added that anything that extracts value based on ‘make-believe’, without any underlying, is just speculation under a sophisticated term.
The RBI governor also warned against several rising cyber threats arising out of the growing digitisation of financial systems.
He further added that a prominent feature of the current situation is overall toughness of Indian financial institutions, which helps the economy stay strong as it strengthens its prospects.
He further added that this demonstrates a blend of good governance and risk management strategies.
Das has always been vocal about his concerns on the risk involved with crypto investments.
Also read: RBI Governor Raises Concerns Over Crypto Following LunaUST Crash
