Pressing the alarm button, Reserve Bank of India (RBI) Shaktikanta Das has cautioned investors on the potential pitfalls of cryptocurrencies.
“Cryptocurrencies are a very serious concern from a macroeconomic and financial stability point of view,” Das said.
Das’s comments come at a time when the crypto craze remains elevated among Indian investors.
After Supreme Court overturned the RBI’s order, which effectively lifted the ban on cryptocurrency trading in India, the craze in India has grown at a furious rate.
The union government has not yet enacted a law on cryptocurrencies. It is in consultation with industry experts, comments from various officials and ministers.
The government might largely want to set severe limits on the trading of cryptocurrencies in India in the larger public interest.
The world’s largest cryptocurrency by market capitalization was trading a percent lower at $67,089. The little more than the decade-old market for digital assets has already roughly quadrupled from its 2020 year-end value. Bitcoin has gained over
The total value of all cryptocurrency assets has just exceeded $3 trillion, according to Bloomberg News.
Meanwhile, Das projected a positive outlook as far as India’s growth is concerned, even as there is Covid uncertainty.
Das said the market evolution of interest rate seems to be quite orderly while expressing confidence that adequate forex reserves will give a cushion to deal with volatility.
On the investment scenario, Das said there are signs of investment pick-up and that demand for bank credit will pick up from next year onwards.
The RBI chief further added that global geopolitical tensions are posing new challenges and have to be watchful.
