Reserve Bank of India (RBI) Governor Shaktikanta Das warned the crypto users of India, saying, “Cryptocurrency is highly speculative and country like India should be very careful,” at the World Economic Forum in Davos on January 16.
“Cryptocurrencies have huge risk, particularly for emerging market economies because they can impact your financial stability, currency stability, and monetary system,” RBI Governor Das stated.
Das issued a warning to investors despite the recent spikes in cryptocurrency prices, voicing worries about the possible impact these “instruments with no underlying value” bring to developing nations like India.
Das’ remarks come just days after the US Securities and Exchange Commission approved bitcoin exchange-traded funds. “While others might see a renewed cryptocurrency party, we see significant risks.”
He underlined that India would not merely adopt other nations’ regulatory strategies, saying, “They (the US SEC) are responsible for their nation’s well-being, and we for ours.”
Governor Das has consistently emphasized concerns about cryptocurrencies. In October, he stressed the importance of endorsing central bank-issued digital currencies, citing their economic efficiency, especially for cross-border transactions.
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