RBI Governor Advocates for Cryptocurrency Ban

Cryptocurrencies Compared to Gambling

RBI Governor Shaktikanta Das expressed strong opinions against cryptocurrencies, comparing them to gambling. During a recent summit, he reiterated the Reserve Bank of India's stance that cryptocurrencies should be banned. He emphasized the lack of clarity in defining crypto, suggesting that it resembles gambling more than a legitimate financial instrument.

The Unreliability of Crypto as an Asset

Das argued that cryptocurrencies lack the characteristics of an asset or financial product. He pointed out that, unlike traditional assets, cryptocurrencies have no underlying value. This absence of intrinsic value makes them highly speculative and unreliable.

Risks to Economic Stability

A significant concern raised by Das is the potential risk cryptocurrencies pose to economic stability. He noted that a substantial portion of transactions are conducted through crypto, which is neither authorized nor regulated by the central bank. This scenario could lead to the RBI losing control over the money supply, posing a threat to economic stability.

Price Volatility and Speculation

Das highlighted the extreme volatility of cryptocurrency prices, which he described as being based on speculative beliefs rather than tangible value. The price fluctuations are unpredictable, making investments akin to gambling.

Lessons from FTX Collapse

The governor also referenced the collapse of the crypto trading firm FTX as a cautionary tale, signifying the precarious future of cryptocurrencies. Despite his criticism of crypto, he advocated for the support of blockchain technology, acknowledging its valuable applications beyond cryptocurrency trading.

In summary, RBI Governor Shaktikanta Das firmly opposes cryptocurrency trading, citing its speculative nature and risk to financial stability, while recognizing the potential of blockchain technology.