Sunday, September 25, 2022

“Crypto Holds No Value” — Governor, Reserve Bank of India

For a long time, the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, has maintained that cryptocurrencies do not have any underlying values. And now the recent market crash may have justified the bank’s long-standing stance and cautious approach towards cryptocurrencies.

Das is convinced that crypto would do more harm than good to the country’s financial system, per local media reports.

Reserve Bank of India Insists Crypto Is Worthless

According to Das, the RBI shares a similar sentiment with the Indian government regarding cryptocurrencies. And just as with most central banks globally, there is a sense of apprehension it still feels towards cryptocurrencies.

For instance, Sweden’s Riksbank recently published that Bitcoin is not money. And in the same manner, the president of the European Central Bank, Christine Lagarde held nothing back when she concluded that crypto is worthless.

India Still Lacking Regulatory Clarity

Presently, India’s regulatory framework is still a work in progress, and one with no end in sight. According to Nirmala Sitharaman, India’s Finance Minister, coming up with a final regulatory framework for the country needs more time. This she said in April while admitting the huge potential inherent in blockchain technology. At the same time, Sitharaman also mentioned how cryptocurrencies may also be used to facilitate illicit activities such as terrorism financing.

Till date, there has been so much uncertainty and back-and-forth opinions regarding crypto regulation in India.

For instance, in February, central bank employee, Rabi Sankar opined that imposing an outright ban on crypto would be the best line of action. Whereas, IMF Managing Director Kristalina Georgieva has commended India’s seemingly slow approach to regulating cryptocurrencies.

Also, just a week ago, CoinSwitch CEO Ashish Singhal reiterated the need for India to establish regulatory clarity. But according to Singhal, this must be done quickly to usher in an era of “certainty” and “peace.”

It remains to be seen, however, how soon India will be able to come up with a crypto-based regulatory framework. And that’s if it ever will.

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