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The Reserve Bank of India (RBI) governor Shaktikanta Das has expressed his concerns against cryptocurrency calling it ‘gambling’.
The governor stated, “RBI’s position is very clear, all cryptos should be banned”, during his address at the Business Today Banking and Economy Summit.
The governor further explained his concerns about the value behind cryptocurrency, “every asset or financial product needs to have an underlying value” as people refer to it as an asset or a financial product as per the governor’s statement.
In his address, the governor likened trading in cryptocurrency to gambling and pointed out that gambling isn’t allowed in our country.
The governor also raised concerns about the autonomy of cryptocurrency undermining the authority of the central bank. “The Reserve Bank, being the monetary authority of the country as the central bank, will lose control over the money supply in the economy.”
The central bank head said that blockchain technology must be supported due to its various applications.
Concerns about the dollarisation of the economy were stated. “RBI’s authority to decide on monetary policy and the level of liquidity that needs to be maintained will be undermined. It will lead to the dollarisation of the economy.”
This isn’t the first time the RBI has raised its concerns. The future of cryptocurrency in India is uncertain as the parliament is yet to bring legislature on it.
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