Cryptocurrencies a ‘clear danger’; It’s a betting have no basis: RBI Governor on Cryptocurrency

The RBI Governor Shaktikanta Das described cryptocurrencies as a “clear danger” on Thursday and claimed that anything that draws value solely from speculative activity without any support is nothing more than sophisticated gambling.

According to the 25th Financial Stability Report (FSR) of the RBI, national authorities must take serious measures due to the growing threat posed by the crypto-asset ecosystem.

“Emerging hazards on the horizon require our attention. While technology has expanded the financial sector’s reach and its advantages must be fully realised, its potential to undermine financial stability must be avoided,” according to Das in the Financial Stability.

Cryptocurrencies are viewed as a highly speculative asset, and the RBI has been raising concerns about them.

A consultation paper on cryptocurrencies is now being finalised by the Center with input from a variety of organisations and stakeholders.

According to the RBI, “identification and quantification of risks presented by crypto-assets suffer data gap difficulties.”

According to the report, there has been a significant change in the liquidity landscape globally, and repositioning has begun to influence financial flows globally. One of its initial effects may be seen in the crypto ecosystem, where one stable coin nearly completely lost all of its value and another de-pegged from the US dollar, highlighting the need for regulatory restraints to guarantee financial stability and investor and consumer safety.