RBI Governor Sees Cryptocurrencies as Source of the Next Crisis

In the absence of a ban, private digital currencies could spark the next financial crisis. This was stated by Shaktikanta Das, the head of the Reserve Bank of India (RBI).

The central bank governor expressed concern that rather than a ban, cryptocurrencies would be regulated and continue to spread. The official remains of the view that they pose a ‘huge threat’ to macroeconomic and financial stability.

‘They [digital assets] have no intrinsic value. I haven’t heard a single convincing argument regarding their ability to fulfill any public objective or that they are a public good. This is 100% speculation’, — said Das.

The head of the central bank also forecast an increase in the number of countries examining the introduction of central bank digital currencies (CBDCs).

‘This is not a matter of fear of missing out or of offering competition to private cryptocurrencies. I think that is how the world will develop’, — explained he.

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

In December, India’s Finance Minister Pankaj Chaudhary revealed details of the digital rupee testing.

The RBI began studying the potential of CBDCs in early 2021.

Read ForkLog’s Bitcoin news on our Telegram — crypto news, prices and analysis.