– RBI Governor Shaktikanta Das has expressed his intention to get rid of crypto through an outright ban, as he considers it to be a form of gambling.
– Das believes that crypto cannot be considered a financial product and must be treated like “gambling activities.”
– The RBI has taken a lead over other central banks by launching its own central bank digital currency (CBDC) late last October.
The Reserve Bank of India (RBI) is not taking the crypto sector lightly, and its Governor Shaktikanta Das recently expressed his intention to get rid of crypto through an outright ban. Das considers crypto to be nothing more than gambling, and believes that it cannot be considered a financial product. At a conference on Friday, he stated that crypto must be treated like “gambling activities,” and that it has no place in the financial system.
The RBI has taken a lead over other central banks by launching its own central bank digital currency (CBDC) late last October. This was done in order to provide an alternative to the digital currencies that have become popular in recent years. RBI Governor Das believes that digital currencies have the potential to be misused for terror funding and other illegal activities, and that their definition is very unclear. He stated that, “Some people call it as an asset, while others call it as a financial product and if that be the case, it has to have some underline. In the case of crypto, there is no underline.”
The RBI has also taken a stance against Bitcoin, which is a hot topic in India. In a recent statement, the RBI said, “Crypto is not a financial product then, therefore it’s masquerading as a financial product or asset is completely a misplaced argument.” The bank official also mentioned that the system implemented by the now-defunct exchange FTX has failed. This has further fuelled the RBI’s opposition to crypto and its Governor’s desire to get rid of it.
The RBI’s stance on crypto is clear, and it looks like the central bank is not going to budge. The RBI is concerned about the potential for misuse of digital currencies and wants to ensure that such activities are kept to a minimum. It remains to be seen if crypto will eventually be accepted in India or if the RBI will continue to oppose it. However, one thing is certain: the RBI is taking a stance against crypto, and it looks like the central bank is not going to change its mind anytime soon.