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In a steadfast stance against the rising global wave of cryptocurrency acceptance, Shaktikanta Das, the Reserve Bank of India (RBI) Governor, reiterated the central bank’s caution on crypto risks. Despite recent developments like the U.S. approving bitcoin ETFs, Das emphasized the potential hazards for both emerging and advanced economies, underscoring the difficulty of containment in the future. This comes as a reminder that India remains wary of the crypto craze, believing that these digital assets lack underlying value and pose threats to economic stability.
Indian Central Bank’s Crypto Stance Unchanged Despite Global Trends
RBI Governor Shaktikanta Das made it clear that the RBI’s position on cryptocurrencies remains unaltered, irrespective of international developments. Regarding the U.S. greenlighting Bitcoin ETFs, Das asserted while speaking at the Mint BFSI Summit, “Our position, my position, and the RBI’s position on this (cryptocurrencies) remains unchanged irrespective of who does what.”
In addition, he voiced apprehensions about the risks linked to embracing cryptocurrencies, highlighting the possible consequences for both emerging and advanced economies. Das confronted the cryptocurrency industry, expressing skepticism by stating that he believes the world and emerging markets cannot withstand a cryptocurrency frenzy comparable to the historical “Tulip mania”.
Drawing parallels to historical financial bubbles, he questioned the feasibility of effective regulation in this burgeoning industry. Referring to an International Monetary Fund (IMF) paper from October 2023, Das reiterated the need for countries to consider imposing additional restrictions on cryptocurrencies to ensure financial stability.
Also Read: Tron Founder Predicts China To Join The Crypto ETF Race
India’s Vision On Central Bank Digital Currency
While maintaining a cautious approach to cryptocurrencies, Governor Das shed light on India’s pursuit of central bank digital currencies (CBDCs). According to his recent interview, the RBI is actively exploring the expansion of wholesale CBDC and investigating programmable features in retail CBDC. Notably, this approach aims to empower senders to specify particular end uses for the digital currency.
The successful implementation contributed to the RBI’s target of achieving one million daily transactions by the end of 2023. Additionally, the RBI and the National Payments Council of India are in talks with several countries for the adoption of India’s Unified Payments Interface in cross-border transactions, reflecting India’s commitment to shaping the future of digital finance.
Meanwhile, India’s RBI stands resolute in its cautious approach to cryptocurrencies, emphasizing the need for a measured and strategic path forward in the rapidly evolving digital financial landscape.
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