Reserve Bank of India (RBI) Governor Shaktikanta Das has once again reiterated his stance calling for a ban on cryptocurrencies on the grounds that they are speculative and gambling-like.
According to Das, RBI’s position on cryptocurrency remains the same, saying that it cannot be considered a financial product and should be treated as a gambling activity. India today Reported on January 13th.
“Anything whose evaluation depends entirely on pretense is nothing more than 100 percent guesswork, or quite simply, it is gambling. In our country we do not allow gambling. If you want to allow gambling, treat it as gambling and write the rules.” <...> He said that dressing cryptocurrencies as a financial product or financial asset is a completely misplaced argument.
Das argued that the threat crypto poses to the financial sector is due to a lack of intrinsic value while warning that allowing digital assets to grow will undermine the bank’s role in controlling the money supply.
“Some people call cryptocurrency an asset, some call it a financial product, but every asset or financial product must have an underlying value. Cryptocurrency has no underlying value,” Das said.
Amid calls to ban cryptocurrencies, the governor acknowledged that the government should support blockchain technology because of its fundamental benefits.
As reported by Coinphony, the Reserve Bank of India (RBI) has called for private cryptocurrencies to be banned at some point, warning that digital assets could lead to the next financial crisis.
To counter the growth of cryptocurrencies like Bitcoin (BTC), the bank is pushing to publish a Central Bank Digital Currency (CBDC) and has since issued a concept note. However, the note has received backlash from the crypto and blockchain industry operating in the country for being reactionary.
Notably, India has been pushing for a global strategy to regulate cryptocurrencies, citing the cross-border nature of the sector. Despite the uncertainty in crypto regulations, India still accounts for a significant share of digital asset investors.
The Reserve Bank of India Wants Yet to Deal with Cryptocurrencies Gambling appeared first on Coinphony.