AMN / WEB Desk
Reserve Bank of India Governor Shaktikanta Das has warned the public against cryptocurrency trading, saying that cryptocurrency trading poses inherent risks to the country’s macroeconomic and financial stability.
At an event in Mumbai this morning, the RBI governor said the next financial crisis could come if cryptocurrencies grow. Highlighting the high volatility of these assets, the RBI governor said cryptocurrencies are currently worth $140 billion, with a loss of about $40 billion this year.
He also said the majority of central bankers around the world are wary of cryptocurrencies. The RBI governor said he has three main concerns with cryptocurrencies. He elaborated that, first, private crypto owes its origins to “breaking the system” and does not believe in a regulated financial world. There is absolutely no underlying basis for it, nor is it clear what public interest or purpose it serves. It has become a high asset, he added.
The RBI Governor also spoke about the RBI’s first retail e-rupee pilot, a version of the Central Bank Digital Currency (CBDC), which was launched on December 1st. The pilot will cover the location of a portion of his group of closed his users consisting of participating customers and merchants.
The governor said CBDC is the currency of the future, explaining that the integrated payment interface involves bank intermediation, whereas CBDC is like paper money and CBDC also has an automatic sweep feature. further explained. He added that CBDC logistics will be much simpler, which will propel India to the forefront of digital currencies this century.