RBI warns of danger posed by cryptocurrencies.

Cryptocurrencies pose a clear danger and threaten stability in the financial system. These conclusions are contained in the report of the Reserve Bank of India (RBI).

“We must bear in mind the risks emerging on the horizon. Cryptocurrencies pose a clear danger. Anything that derives value from fiction, without any underlying basis, is simply speculation under a fancy name,” the document states.

In RBI’s view, decentralized digital assets “are designed to bypass the financial system and all of its controls,” including anti-money-laundering and counter-terrorism financing mechanisms.

However, in the RBI’s risk list, cryptocurrencies do not top the list. They are outpaced by rising commodity prices and geopolitical tensions. The regulator assessed them as events “with significant consequences” that could threaten the integrity of the global financial system.

The RBI has long been a steadfast opponent of digital assets. In 2018 the запретил банкам и финансовым организациям from providing services to companies dealing in cryptocurrencies. In March 2020 the Верховный суд отменил ограничение.

In spring 2021 it emerged that the regulator попросил банки прекратить отношения с биткоин-биржами. Following this, the RBI призвал подконтрольные учреждения не ссылаться на отмененную директиву о запрете на операции с криптовалютами.

In May 2022, media reports indicated that representatives of the RBI were concerned about dollarisation of the economy due to digital assets.

In June, RBI Deputy Governor T. Ravi Sankar suggested that CBDC could completely displace private virtual currencies, including Bitcoin.

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