The governor of the RBI, Shaktikanta Das, reiterates the risks currently connected to cryptocurrencies or other digital assets and the necessity for an international framework to address these concerns.
While speaking at the conclusion of the G20 FMCBG meeting, Das stated “there is now wide recognition and acceptance of the fact that cryptocurrencies, or crypto assets, or crypto products, or by whatever name you call it to involve several major risks to financial stability, to monetary systems, to cyber security issues, and to overall financial stability and they need to be looked at.”
Das noted going forward the goal is to create an international architecture or framework to address this issue with crypto.
The RBI governor added it is being worked on by the Financial Stability Board (FSB) and the IMF. The FSB and IMF will collaborate on a synthesis paper and, they will serve as the foundation for upcoming negotiations to create a global architecture.
“Multiple options are under consideration. But it’s too early to speak on what will be the eventual architecture. But yes, there were views that it should be regulated with a view to control and check its proliferation, to control its risks,” Das stated.
He noted “Let us see wait for the discussions to go forward and we will see how it shapes up. In any case, ultimately, every country is a sovereign country. Every country is sovereign. The countries will take their decisions. But once something is agreed in the G20, naturally, it would be expected that countries would, by and large, follow whatever is the agreed position.”
Last December, RBI Gov did say that cryptocurrencies will cause the next financial crisis. He even slammed crypto saying there is no underlying value in them and crypto is nothing but gambling.