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Wednesday, May 31, 2023

RBI Governor Urges to Crypto Ban Ahead of Union Budget 2023

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At the Business Today Banking and Economy Summit on Friday, the Governor of the Reserve Bank of India, Shaktikanta Das, talked about how cryptocurrencies are becoming more popular in India and what he thinks about that.

Das said this about the place of cryptocurrency in the Indian economy: “Cryptocurrency should be banned because it has no value in the market. Every asset and the financial product has an underlying value, so the value of crypto is based entirely on what people think it’s worth.” Das went on to say at the event, “Crypto is a form of gambling with no real value, and the world of crypto is nothing but speculation.”

This is a bad sign for India’s crypto industry, especially since the annual Union Budget is coming up in a few days. 

Read More: Indian Digital Currency

RBI’s Intention to Ban Crypto

It has come to light in recent reports that the Reserve Bank of India (RBI) has a negative attitude toward cryptocurrencies and views them as an entity that has the potential to result in “financial instability.” In light of the surge in demand, Das emphasized the viewpoint of the central bank, which is that Bitcoin and Ethereum should be prohibited.

During the event, the Governor made the following statement: “If cryptocurrency is authorized in India, the Reserve Bank of India may likely fail in monitoring the transactions.”

“Crypto masquerading as a financial asset is a completely incorrect argument,” he went on to say later in the conversation. While acknowledging that cryptocurrency is a type of gambling, Das stated, “Our government does not support gambling, and if individuals still want to continue investing in it, set down the guidelines for the same.” Das was referring to the regulation of cryptocurrency.

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In addition to this, he asserted that “crypto is not a financial product but rather pure gambling” and advocated for the complete prohibition of cryptocurrencies.

What’s More?

RBI’s governor talked about how worried he was about the future of this currency, which could be bad for the economy. He did this by bringing up the recent collapse of the FTX. At the event, he said, “Dollarization would go up because more people are using crypto, which could hurt the country’s sovereignty.”

Das mainly talked about how cryptocurrencies should be regulated. As was already said, the government has been working on a crypto bill for a long time. In October, Nirmala Sitharman said what she thought about the G20 Summit’s plan to talk about crypto regulation and start a technology-driven regulatory framework for crypto assets.



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