👉👉👉 #RBI Chief: Crypto Threatens Rupee Stability, Urges Investors to Be Cautious
The head of India's central bank, Shaktikanta Das, issued stern warnings about the significant risks associated with cryptocurrencies, particularly for emerging market economies, during the World Economic Forum in Davos. Das emphasized the lack of underlying value in #cryptocurrencies , stating that while they are not currencies, they have the potential to become part of the payment system, posing risks to financial stability, currency stability, and the monetary system.
Commenting on the U.S. Securities and Exchange Commission's approval of spot bitcoin exchange-traded funds (ETFs), Das expressed caution, noting that while some may see it as a cryptocurrency party, there are substantial risks involved. He highlighted the U.S. #SEC's responsibility for their nation's well-being, drawing a distinction from India's perspective.
Das, a longstanding critic of bitcoin and cryptocurrencies, reiterated concerns about volatility, money laundering, and terror financing risks inherent in these assets. He recalled the cryptocurrency crash from a few years ago and stressed the need for careful consideration, stating that celebrating new developments in the crypto space without acknowledging the associated risks could be shortsighted.
In January of the previous year, Das had strongly recommended a complete ban on cryptocurrencies in India, expressing concerns about their potential impact on the economy and the authority of the Reserve Bank. He argued that allowing cryptocurrencies would undermine the central bank's control over the money supply and could lead to the dollarization of the economy.
Source - news.bitcoin.com