Mumbai, RBI Governor Shaktikanta Das said the central bank does not “emulate” others when it comes to regulations and asserted that the bank’s and his own opposition to cryptocurrencies remains the same, a day after US regulators allowed bitcoin Exchange Traded Funds (ETFs). Additionally, he said the world and emerging markets cannot afford to have crypto mania.
“What is good for another market may not be good for us. Therefore, both the Reserve Bank’s and my personal viewpoints remain unchanged,” for crypto mania Das said.
The Reserve Bank of India (RBI) chief said that traveling down that path of cryptocurrencies will pose huge risks for emerging market economies and advanced economies that will be very difficult to contain in the future, at a financial sector seminar organised by Mint here.
In response to a question about cryptocurrencies in the US, Das asked, “Why do you want to go down that road? What are you going to achieve?”
Personally, Das and the RBI oppose private cryptocurrencies or crypto mania as they pose a significant threat to financial stability.
In the same announcement, the US capital markets regulator also cautioned investors to be careful and warned them of the risks that they face. Regardless of who does what, our position, my position and the RBI’s position remain the same. Just because someone did something, we do not need to emulate them,” he said.
A bitcoin ETF was permitted by the US regulator SEC, which prompted the remarks. As an ETF structure provides institutions and financial advisors with a familiar and regulated way to have exposure to bitcoin, the approval is seen as a landmark event in the adoption of cryptocurrencies in mainstream finance.
I don’t wish to comment on what another country’s regulator has done; they know what’s best for their country. However, they themselves have warned people about the risks of this product.
“I don’t believe emerging markets and the world can afford a crypto mania that could lead to similar outcomes as the Tulip mania that led to an asset bubble in the Netherlands in the past,” the governor said.
According to Das, based on the past record of the present government, he does not expect inflationary pressures from the upcoming vote on account.
Moreover, Das mentioned that the government has taken many supply-side measures to contain price rises since the Russia-Ukraine conflict began.
Also Read: