India’s central bank governor has reiterated his skepticism about cryptocurrencies, calling them “just gambling” and calling for a blanket ban.
Shaktikanta Das speaking at a Business Today event claimed Cryptocurrencies have no intrinsic value and their perceived “value is just a hoax”. alluded to..
“All assets, all financial instruments must have some basis (value), but in the case of cryptocurrencies there is no basis…not even tulips…and the rise in cryptocurrency market prices is , based on a made-up story.”
Das added that cryptocurrencies are “100% speculation and, frankly, gambling.” He later argued that since gambling is prohibited in India, virtual currencies should not be allowed either.
Another reason why the Reserve Bank of India (RBI) should ban cryptocurrencies is that they pose a threat to central banks, Das said, stating that if cryptocurrencies become mainstream, central banks will It will affect the ability to make monetary policy decisions, he said. He said:
“Believe me, these are not empty alarm signals. I don’t think I need to add anything more, given the deployment of .
Meanwhile, Das expressed his support for central bank digital currencies (CBDCs), calling them the “future of money.”According to reports, India Started a pilot program In November last year, we collaborated with nine banks to launch a digital currency
Despite pushing for a CBDC, the RBI has long maintained a tough stance on digital assets, arguing that the nascent asset class lacks fundamental value. Central banks have always warned investors and governments against cryptocurrencies due to their volatility and the risks of fraud and scams.
Last July, RBI Asked The Indian government will ban cryptocurrencies in the country, citing the “destabilizing” effect of this asset class on currency stability.
India, the current G20 Presidency, is also taking advantage of this opportunity. Coordinating Global Crypto RegulationAs reported, India’s Federal Economic Secretary Ajay Seth said last December that G20 countries would study the impact of cryptocurrencies on the economy, monetary policy and banking sector to inform policy consensus.
