Why Crypto Is ‘Nothing But Gambling’ To India’s Central Bank Governor

Share This Post

Reserve Bank of India Governor Shaktikanta Das has no love for crypto. In fact, he wants to get rid of it through an outright ban, saying that these “are nothing but gambling.”

Das said in his speech at a conference on Friday that RBI’s stance on cryptocurrency remains unchanged.

The bank official disclosed that digital currencies cannot be considered as a financial product and must be treated like “gambling activities.”

The RBI has been vocal about its opposition to such currencies and also took a lead over other central banks by launching its own central bank digital currency (CBDC) late last October.

RBI governor Das

Why RBI Governor Wants To Get Rid Of Crypto

Das explained further why he wants an outright ban on cryptocurrencies. He said that besides the commonly known danger of terror funding associated with these asset types, their definition is very unclear.

“Some people call it as an asset, while others call it as a financial product and if that be the case, it has to have some underline,” he said. “In the case of crypto, there is no underline.”

Bitcoin is a hot topic in India, but the government isn’t taking it lightly. In a recent statement, the RBI said:

“Crypto is not a financial product then, therefore it’s masquerading as a financial product or asset is completely a misplaced argument.”

The RBI’s official stance on bitcoin comes after reports that the system implemented by the now-defunct exchange FTX has failed. The report also mentioned that there are rumors about the RBI’s plans to ban digital currency in India.

However, on the macro-level, the RBI governor said:

“Cryptocurrencies have the potential to become a means of exchange for doing a transaction. Most of it is dollar denominated and if one allows it to grow, which means 20 percent of the transactions is happening through crypto, that means it is not happening by the central bank and it is issued by private companies all over the world.”

If this happens and people start using crypto instead of dollars —and they do — then RBI will lose control over the money supply in the economy.

On Bitcoin & The US Dollar’s Influence

Some analysts say that if bitcoin were truly a financial product, then there would be specific rules for it. And that’s simply not the case.

In fact, most digital currencies are dollar-denominated. That means they’re used to make transactions with fiat currency, which means they’re not issued by central banks and they’re not used to control money supply in the economy. And that means that the RBI has lost control over it.

Meanwhile, warning that legalizing bitcoin will increase dollarization of the economy, Das stated that the claim that digital assets disguised as a financial product or financial asset is utterly wrong.

-Featured image by The Youth

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

XRP futures open interest nears record $8 billion as price breaks $3

Ripple-linked XRP has crossed the $3 mark for the first time in seven years, driven by unprecedented interest in the derivatives market Data from CryptoSlate shows that the digital asset spiked by

วิเคราะห์เหรียญ AI Agents มาแรง! คาดการณ์แนวโน้ม Aixbt และ MIND ในอนาคต

Aixbt ยังน่าลงทุนอยู่หรือไม่ และ MIND คือ AI Agent ตัวต่อไปที่ควรจับตามองหรือไม่

Financial Authorities Order Upbit to Suspend Operations Over KYC Violations

The post Financial Authorities Order Upbit to Suspend Operations Over KYC Violations appeared first on Coinpedia Fintech News In a latest development, the financial authorities have notified Upbit,

Altcoin Season Index Surge as Bitcoin Nears $100k Milestone

The post Altcoin Season Index Surge as Bitcoin Nears $100k Milestone appeared first on Coinpedia Fintech News After teasing below $90k earlier this week, Bitcoin (BTC) price has continued to grind

XRP and XYZVerse: One Faces Regulation, the Other Offers 15,000% Gains — Which Will Soar First?

The post XRP and XYZVerse: One Faces Regulation, the Other Offers 15,000% Gains — Which Will Soar First appeared first on Coinpedia Fintech News As XRP confronts regulatory hurdles, XYZVerse

XRP SEC News Today: Bill Morgan Exposes SEC’s Missteps in Ripple Lawsuit

The post XRP SEC News Today: Bill Morgan Exposes SEC’s Missteps in Ripple Lawsuit appeared first on Coinpedia Fintech News Bill Morgan, a pro-crypto attorney, has strongly criticised the new