In Brief:
- The RBI Governor addressed cryptocurrencies as a serious concern.
- Expressed concern about the possibility of financial insecurity as a result of crypto investments.
- The Governor questioned the number of investors involved in crypto trading being reported in the media.
Shaktikanta Das, a governor of RBI has stated that the central bank still has “major concerns” about cryptocurrency.
At the BSFI Insight Summit, Das reaffirmed its strong opposition to cryptocurrencies, claiming that they pose serious threats to the country’s macroeconomic and financial stability.
He claimed that they pose a serious threat to any financial system because they are unregulated by central banks.
The number of Indians said to have invested in cryptocurrencies, according to Governor Shaktikanta Das, is very much exaggerated. Das went on to say that 70% or more of the participants had only invested about INR 1,000 in crypto.
“I am not sure about the veracity of these numbers. Of course, my view may not be fully right as we don’t get full information about these currencies as they aren’t regulated by us or by any other central bank,” the Governor stated.
Even though the RBI is not that favoring the crypto industry, the market is already booming in the country. The crypto exchanges in India are growing at such a fast pace with an increase in users day by day.
Cryptocurrency exchange, CoinDCX, became the first crypto unicorn of India in August. Following the footsteps of CoinDCX in October, Coinswitch Kuber became the second crypto unicorn and also the largest in the country.
