Breaking: RBI Chief Reaffirms Crypto Ban, Warns Of Upcoming Financial Crisis

Crypto News: The Indian government and watchdogs have been skeptical over the use and implementation of private digital assets in the nation. Authorities have already implied a 30% tax on the capital gains earned from crypto trading in India. However, the Indian Central Bank governor has issued a warning regarding the next financial crisis.

RBI Chief warns of a financial crisis

In the BFSI insight Summit, Shaktikanta Das, RBI Governor talked about the recent collapse and developments in the crypto industry. However, he warned of the next possible financial crisis and mentioned that it will come from private digital assets.

Das further asserted that he still holds the same view regarding that digital assets and wants them to be prohibited. Meanwhile, he also added that the crypto has no underlying value. Private Digital assets are major risks for macroeconomic and Financial Stability.

RBI Chief mentioned the recent decline in the crypto market highlighting the major FTX collapse. These episodes have proved to be a major supporter of the Indian authorities’ stand against crypto. However, Das stated that a change in the value of any product is a function of the market.

Crypto origin is to bypass the system

RBI Chief stated that the origin of cryptocurrency is to bypass and break the system. Meanwhile, Das argued that he is yet to hear any credible argument of what public good crypto serves. There is no clarity about it. He marked the crypto as speculative activity and it should be prohibited.

Earlier, Coingape reported that the RBI launched the pilot phase of Central Bank Digital Currency (CBDC)/ Retail digital Rupee on December 1, 2022. The watchdog will be testing the settlement of secondary market transactions.

Meanwhile, the Indian government has faced heavy criticism from citizens for imposing high taxes rate on retail crypto trade.