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RBI Governor: The Next Financial Crisis Will Be Due to Cryptos

Published 2022-12-21, 09:10 a/m
© Reuters.  RBI Governor: The Next Financial Crisis Will Be Due to Cryptos

  • Governor Shaktikanta Das says crypto poses risks for financial stability.
  • He adds that the valuation of crypto has gone down from 190 to 140 billion.
  • Das says cryptocurrencies inherently want to “break” the system.

On Wednesday, in a media summit, the Governor of the Reserve Bank of India (RBI), Shaktikanta Das said that the next financial crisis will be due to private cryptocurrencies.

Citing the disadvantages of cryptocurrencies, Das said, “The total value of crypto has come down to $140 billion and $40 billion got wiped out. They have no underline and I yet have to hear good arguments about what public good it serves and that it is a speculative activity.”

Citing the FXT collapse, Shaktikanta said that cryptocurrencies have underlying risks for microeconomic and financial stability.The governor added that the valuation of private cryptocurrencies has gone down from US $190 billion to US $140 billion and there is no fundamental value for the market-determined price. Das said that cryptocurrencies inherently want to “break” the system, and do not believe in a regulated financial system.

The Governor, however, pointed out the need for the Central Bank of Digital Currency (CBDC) and explained that CBDC needs no arbitrators. He added that when considered Lo ...

The post RBI Governor: The Next Financial Crisis Will Be Due to Cryptos appeared first on Coin Edition.

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