{"id":15771,"date":"2022-12-23T06:30:32","date_gmt":"2022-12-23T06:30:32","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cryptocurrencies-will-cause-next-financial-crisis-if-theyre-not-banned-economics-bitcoin-news\/"},"modified":"2022-12-23T06:30:32","modified_gmt":"2022-12-23T06:30:32","slug":"cryptocurrencies-will-cause-next-financial-crisis-if-theyre-not-banned-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cryptocurrencies-will-cause-next-financial-crisis-if-theyre-not-banned-economics-bitcoin-news\/","title":{"rendered":"Cryptocurrencies Will Cause Next Financial Crisis if They’re Not Banned \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The governor of India\u2019s central bank, the Reserve Bank of India (RBI), has warned that the next financial crisis will come from cryptocurrencies, like bitcoin and ether. The central bank chief added that cryptocurrencies pose \u201chuge inherent risks\u201d to India\u2019s macroeconomic and financial stability.<\/strong><\/p>\n

Indian Central Bank Warns About Crypto Causing the Next Financial Crisis<\/h2>\n

Reserve Bank of India (RBI) Governor Shaktikanta Das warned about the danger of cryptocurrency Wednesday. The central banker cautioned:<\/p>\n

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Cryptocurrencies have \u2026 huge inherent risks for our macroeconomic and financial stability.<\/p>\n<\/blockquote>\n

The RBI is primarily concerned about cryptocurrencies having no underlying value, Das clarified, emphasizing that crypto is \u201cspeculative\u201d and should be banned.<\/p>\n

Indian authorities refer to any non-government-issued cryptocurrencies, such as bitcoin and ether, as \u201cprivate\u201d cryptocurrencies. Commenting on crypto trading, Das said:<\/p>\n

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It is a hundred percent speculative activity, and I would still hold the view that it should be prohibited \u2026 because, if it is allowed to grow \u2014 if you try to regulate it and allow it to grow \u2014 please mark my words, the next financial crisis will come from private cryptocurrencies.<\/p>\n<\/blockquote>\n

Meanwhile, India is trying to launch its own central bank digital currency (CBDC). The RBI recently started both wholesale<\/a> and retail<\/a> digital rupee pilots.<\/p>\n

Das explained that CBDCs can expedite international money transfers and reduce the need for logistics, including printing notes. Earlier this month, RBI Deputy Governor T. Rabi Sankar claimed that India\u2019s central bank digital currency can do anything<\/a> cryptocurrencies can do.<\/p>\n

The Indian government is also working on the country\u2019s crypto policy. Earlier this week, the government provided Lok Sabha, the lower house of India\u2019s parliament, with an update<\/a> on its cryptocurrency bill that was scheduled to be discussed in the winter session of parliament last year.<\/p>\n

Meanwhile, India\u2019s finance minister, Nirmala Sitharaman, has shared that the government plans to discuss crypto regulations with the G20 countries to establish a technology-driven framework<\/a> for crypto assets. Last month, she and U.S. Treasury Secretary Janet Yellen discussed<\/a> crypto regulation during the ninth India-U.S. Economic and Financial Partnership meeting.<\/p>\n

What do you think about the warning by India\u2019s central bank governor about crypto causing the next financial crisis? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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