{"id":16495,"date":"2023-01-16T05:12:12","date_gmt":"2023-01-16T05:12:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/indian-central-bank-chief-insists-crypto-should-be-banned-warns-it-will-undermine-authority-of-rbi-regulation-bitcoin-news\/"},"modified":"2023-01-16T05:12:12","modified_gmt":"2023-01-16T05:12:12","slug":"indian-central-bank-chief-insists-crypto-should-be-banned-warns-it-will-undermine-authority-of-rbi-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/indian-central-bank-chief-insists-crypto-should-be-banned-warns-it-will-undermine-authority-of-rbi-regulation-bitcoin-news\/","title":{"rendered":"Indian Central Bank Chief Insists Crypto Should Be Banned \u2014 Warns ‘It Will Undermine Authority of RBI’ \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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India\u2019s central bank has reiterated its stance on banning cryptocurrencies like bitcoin and ether. The governor of the Reserve Bank of India (RBI) likened cryptocurrency trading to gambling. He warned that crypto \u201cwill undermine the authority of the RBI and lead to the dollarization of the economy.\u201d<\/strong><\/p>\n

RBI\u2019s Governor Wants Crypto Banned<\/h2>\n

The governor of India\u2019s central bank, the Reserve Bank of India (RBI), Shaktikanta Das, emphasized the bank\u2019s stance on crypto at the Business Today Banking and Economy Summit Friday.<\/p>\n

Das stressed that the central bank\u2019s view is to completely ban cryptocurrencies like bitcoin and ether, India Today reported, quoting him as saying: \u201cRBI\u2019s position on crypto is very clear \u2014 it should be banned.\u201d<\/p>\n

Emphasizing that cryptocurrencies have no underlying value, the Indian central bank governor described:<\/p>\n

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Some people call cryptocurrency an asset, some call it a financial product, but every asset or financial product needs to have an underlying value. But cryptocurrency does not have any underlying value.<\/p>\n<\/blockquote>\n

Das proceeded to express his opinion on the market prices of cryptocurrencies, stating that they are based on speculation alone. He likened cryptocurrency trading to gambling.<\/p>\n

\u201cAnything whose valuation is dependent entirely on make-believe is nothing but 100% speculation, or to put it bluntly, it is gambling,\u201d the RBI chief stressed. \u201cIn our country, we don\u2019t allow gambling. If you want to allow gambling, treat it as gambling and lay down the rules.\u201d<\/p>\n

Reiterating that he does not see crypto as a financial product, the central banker said:<\/p>\n

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Cryptocurrency masquerading as a financial product or a financial asset is a completely misplaced argument.<\/p>\n<\/blockquote>\n

Das also warned about the risks crypto poses to the Indian economy. He cautioned:<\/p>\n

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The Reserve Bank, being the monetary authority of the country as the central bank, will lose control over the money supply in the economy \u2026 It will undermine the authority of the RBI and lead to the dollarisation of the economy.<\/p>\n<\/blockquote>\n

RBI officials similarly warned in May last year that crypto could lead to the dollarization<\/a> of a part of India\u2019s economy \u201cwhich will be against the country\u2019s sovereign interest.\u201d<\/p>\n

India currently does not have a regulatory framework for cryptocurrencies. The government has been working on a crypto bill<\/a> for several years. Indian Finance Minister Nirmala Sitharaman said in October last year that the government hopes to discuss crypto regulation with the G20 countries to establish a technology-driven regulatory framework<\/a> for crypto assets.<\/p>\n

What do you think about RBI Governor Shaktikanta Das\u2019 statements? 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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