The RBI Governor Shaktikanta Das on Wednesday expressed concerns over the risks posed by Cryptocurrencies to emerging Market Economies like India and said that instruments like Bitcoin, which lack underlying value, could be a significant threat to currency and monetary stability.
He was speaking at the World Economic Forum in Davos.
While some individuals globally may think that the cryptocurrency “party” has recommended, the significant risks posed by these instruments, lacking underlying value, are substantial for emerging market economies, Das said.
Das also highlighted the potential for money laundering and terror financing which may be associated with cryptocurrencies.
The reaction of Das follows days after US Securities and Exchange Commission (SEC) approved Bitcoin exchange traded funds, thereby causing cryptocurrencies prices to increase globally.
On the SEC’s decision, Das said every country’s regulator knows what is suitable for their nation. In so far as India is concerned, he said, the government sees lots of risks and it is not necessary for India to simply adopt what somebody else says.
Since a long time, Das has been saying that cryptocurrencies pose a threat to India’s monetary stability and has the potential to serve as catalyst for a significant global crises.
