India’s central bank governor has once again expressed skepticism about cryptocurrencies, saying the assets are “nothing but gambling” and asking for the ban to be reserved.
Speaking at a Business Today event, Shaktikanta Das argued that cryptocurrencies do not have any intrinsic value and their perceived “value is nothing but a sham.” He said that cryptos aren’t even tulips, alluding to a famous jab at the Dutch tulip craze. – until the beginning of the last century.
“Every asset, every financial product must have some basis (value), but with crypto there is no basis… not even a poppy… and the rise in the market price of crypto is based on a fake.”
Das added that crypto is “100 percent speculation, or to put it very bluntly, it’s gambling.” He then argued that since gambling is banned in India, cryptos should not be allowed either, or else the government should set the rules for gambling.
Another reason why the Reserve Bank of India (RBI) should ban cryptocurrencies is that they pose a threat to central banks, Das said, noting that if cryptocurrencies gain mainstream acceptance, they will affect central banks’ monetary policy decisions. on the ability to make. He said:
“Please believe, these are not empty alarms. A year ago we said at the Reserve Bank that this whole thing was likely to collapse sooner rather than later. And if you see the developments of the last year culminating in the FTX episode, I don’t think I need to add much more.”
On the other hand, Das expressed his support for Central Bank Digital Currencies (CBDC), calling them the “future of money”. India reportedly launched its digital currency pilot program in November last year in partnership with nine banks.
Despite its CBDC push, the RBI has long maintained a tough stance on digital assets, arguing that the fledgling asset class has no underlying value. The central bank has consistently warned investors and the government against crypto, citing volatility as well as risks of fraud and fraud.
In July last year, the RBI asked the Indian government to ban cryptocurrencies in the country, citing the asset class’ “destabilizing” effect on monetary stability.
India, which currently chairs the G20, also plans to use this opportunity to coordinate global crypto regulation. India’s federal economic affairs secretary Ajay Seth reportedly said in December last year that the G20 countries would study the impact of cryptocurrencies on the economy, monetary policy and banking sector to inform a political consensus.