Das also brought up the bitcoin exchange FTX’s most recent collapse.
Shaktikanta Das, the governor of the Reserve Bank of India (RBI), predicted on Wednesday that private cryptocurrencies will be the cause of the next financial disaster.
At a media gathering, Das gave a speech in which he discussed the drawbacks of cryptocurrencies. Cryptocurrency poses hazards to the financial and macroeconomic stability of the economy. Private coins owe their existence to system-bypassing and system-breaking. The value of all cryptocurrencies has decreased to $140 billion, and $40 billion has been lost. They don’t have underlines, and I still need to hear persuasive justifications for the public good it serves and the fact that it is a speculative activity, Das continued.
Das asserted that the Central Bank of Digital Currency (CBDC) is essential and that it does not require middlemen. Das stated, “Logistically, CBDC will be a lot faster and it is a currency in itself.”
The RBI has also expressed concern over the growth in the popularity of cryptocurrencies in recent years. The RBI claims that the growth of cryptocurrency assets presents significant risks for money laundering and the funding of terrorism. “We definitely feel that there is no basis at all for cryptocurrencies. Cryptocurrencies carry significant inherent hazards to the stability of the microeconomy and the financial system.
Das stated that the introduction of a digital rupee will help the Indian economy reduce operating costs related to the maintenance of physical cash, increase the effectiveness of payment settlements, and foster innovation in cross-border payments.
Das also brought up the bitcoin exchange FTX’s most recent collapse.
When it comes to secrecy, Shaktikanta Das said last month that there was no need to instill fear psychosis in people’s minds because the pilot CBDC tends to leave no trace with a bank.
RBI previously stated that CBDC will function as a medium of exchange, legal currency, and trustworthy store of value for all people, businesses, governments, and other institutions that may convert it into bank money or cash.
