The Reserve Bank of India (RBI) Shaktikanta Das sounded the alarm about cryptocurrencies and warned investors of the potential dangers of digital currencies.
cryptocurrencies are a very serious problem from a macroeconomic and financial stability perspective, Das said on Wednesday.
Shaktikanta’s comments come at a time when the cryptocurrency craze remains high among Indian investors, especially retailers.
After the Supreme Court overturned the RBI order, which effectively lifted the ban on cryptocurrency trading in India, excitement grew staggeringly in India.
The union government has not yet passed a law on cryptocurrencies, in consultation with industry experts, comments from various officials and ministers
After several rounds of caution, the government might largely want to set severe limits on the trading of cryptocurrencies in India in the larger public interest
In cryptocurrencies, Bitcoin and Ether prices fell today after rising to all-time highs on Tuesday as virtual token currencies fell from their highs, both have more than doubled since June and are up nearly 70% versus early October the dollar rose. .
The world’s largest cryptocurrency by market cap traded a lower percentage at $ 67,089. The digital asset market has roughly quadrupled its value at the end of 2020 in just over a decade. Bitcoin is up more than 131% since the beginning of the year.
The total value of all cryptocurrency investments has just exceeded $ 3 trillion, according to Bloomberg News.
Regarding the state of the Indian economy, Shaktikanta Das said that he sees very positive prospects for India’s growth, even if the uncertainty of Covid persists.
Shaktikanta Das went on to say that interest rate market developments appeared to be quite orderly, while also expressing confidence that sufficient foreign exchange reserves would provide a cushion for dealing with volatility.
Regarding the investment scenario, Das said there were signs of a recovery in investment and that demand for bank lending would pick up from next year.
The head of RBI also added that global geopolitical tensions pose new challenges and we need to be vigilant.
