RBI chief likens cryptocurrency to gambling and calls for ban

The RBI governor Shaktikanta Das, during a speech at the BT Banking & Economy summit, said that digital assets should be banned outright in the country. Business Today reports.

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\”The RBI’s position is extremely clear: all cryptocurrencies must be banned. However, blockchain technology should be supported, because it has many other applications,\” he explained.

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Das stressed the unreliability of cryptocurrencies due to constant price swings and the \”uncertainty\” of the definition. In his words, some regard it as an asset, others as a financial product.

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\”Volatility is based on a fanciful notion that the price of a given cryptocurrency can rise or fall. What is happening, with no particular explanation and with valuations entirely dependent on imagination, is no more than 100% speculation, one might call it gambling,\” he said.

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He noted that cryptocurrencies are already banned in India. In his view, \”disguising cryptocurrency as a financial product or asset\” is inappropriate.

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The RBI chief also warned about the dollarisation of the economy. In his view, cryptocurrencies could become a medium of exchange and account for up to 20% of transactions.

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\”The RBI’s authority to make monetary policy decisions and to maintain liquidity will be undermined,\” he concluded.

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Earlier, in December 2022, the RBI chief saw in cryptocurrencies the source of the next financial crisis if they are not banned.

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In the same month, India launched a pilot project to test the retail digital rupee.

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