Governor of the Reserve Bank of India, Shaktikanta Das has state in an interview that the country’s central bank has rightly been cautioning against cryptocurrencies, following the collapse of Terra’s UST and LUNA.
RBI officials warn that with most cryptocurrencies denominated by the US dollar, it could lead to the dollarisation of the country’s economy on 15th May 2022.
The officials said that dollarisation is against the country’s sovereign interest while maintaining that digital assets pose a threat to India’s financial stability.
Shaktikanta Das told CNBC TV18 in an interview that if crypto had regulated in India leading to the recent disaster revolving around the Terra ecosystem, investors would have question the effectiveness of the law.
While the Indian government has often said that it will not shut out crypto completely, the central bank has called for a ban on multiple occasions.
Shaktikanta Das Said :
“Crypto is something whose underlying [value] is nothing. There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial, and macroeconomic stability of India,”.
The RBI governor add that the country’s central bank and government are “in sync” on their stance on crypto regulation because the government is “equally concern.”
Shaktikanta Das Said :
“We have conveyed our position to the government and they will take a considered call,”.
A question was pose to Shaktikanta Das regarding the assertion that was made by Brian Armstrong, the CEO of Coinbase.
Brian Armstrong claim that Coinbase India disable payments by the Unified Payments Interface (UPI) just a few days after launch due to “informal pressure” from the RBI.
Shaktikanta Das respond he did not want to comment on the hypothetical remarks offer by those from the outside.
Indian crypto sector is completely unregulated.
The Indian Finance Ministry is conducting meetings with different financial entities such as the International Monetary Fund, World Bank, the Reserve Bank of India, as well as the Securities and Exchange Board of India (SEBI).
