Cryptocurrencies are serious threat to financial system: RBI Governor


RBI Governor Shaktikanta Das underlined the challenges posed by cryptocurrencies such as Bitcoin

RBI may soon launch India’s own cryptocurrency

Governor of the Reserve Bank of India Shaktikanta Das has reiterated his concerns about cryptocurrencies, calling them a threat to any financial system until they are regulated. During an event, the Governor of the Reserve Bank of India shared his thoughts and stated that cryptocurrencies pose major challenges to the country’s macroeconomic and financial stability, and he also questioned the number of investors that trade on them, as well as their alleged market value.

The remarks come amid reports that the government intends to regulate digital currencies through a bill that will be introduced at the upcoming Budget. Das has also shared his thoughts ahead of the RBI’s own panel report on the sensitive issue, which is due next month.

Cryptocurrencies are a serious concern to the RBI from a macroeconomic and financial stability standpoint. The government is actively looking at the issue and will decide on it. But as the central banker, we have serious concerns about it and we have flagged it many times,” Das said.

Earlier this year, when the government was taking a tougher stance on cryptocurrencies, the RBI stated its intention to launch an official digital currency for India. The RBI chairman stated at the time that a committee was working to determine the model of the central bank’s digital currency.

It would be interesting to observe if the RBI keeps developing a digital rupee if the government does not decide to ban current cryptocurrencies such as Bitcoin.

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