RBI governor Shaktikanta Das says cryptocurrencies are a “clear danger”

RBI governor Shaktikanta Das says cryptocurrencies are a "clear danger"

Reserve Bank of India (RBI) Governor Shaktikanta Das has voiced concerns about cryptocurrencies and called digital money a “clear danger.” In its 25th Financial Stability Report (FSR), RBI stated that anything that derives value based on make-believe is nothing more than speculation.

“We must be mindful of the emerging risks on the horizon. Cryptocurrencies are a clear danger. Anything that derives value based on make-believe, without any underlying, is just speculation under a sophisticated name,” Das said.

The acceptance of cryptocurrency, introduced in 2009, remains a big concern. In fact, it is yet to earn that trust in countries like India, which is yet to recognize digital money.

In 2018, India barred entities regulated by cryptocurrency, however, a couple of years later, the Honourable Supreme Court struck down the circular.

‘Cyber Risks’

RBI said the digitalization of the financial system has given rise to cybercrime and requires immediate attention.

“As the financial system gets increasingly digitalized, cyber risks are growing and need special attention,” Das said.

According to a Press Trust of India report, the Indian government is taking some valuable inputs from the World Bank and the IMF to finalize a consultation paper on cryptocurrencies.

Microsoft co-founder Bill Gates recently said the cryptocurrencies and NFTs are “100 percent based on greater fool theory.” While Gates is not the only one to express skepticism about the digital asset, Warren Buffet once called bitcoin “rat poison squared.”

Read – The Beginner’s guide to Decentralized Finance (DeFi)

Read – Chainalysis launches Crypto Incident Response Program to flag cryptocurrency hacks

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