Bank of India Governor Shaktikanta Das says private crypto assets like Bitcoin (BTC) could trigger the next financial crisis and should be banned as they carry “enormous inherent risks”. told CNBC. report December 21st.
Das said cryptocurrencies carry “huge inherent risks” that could threaten financial stability. He added that cryptoassets should be banned because they have no value and are primarily used as speculative trading tools. He was quoted as saying:
“[Cryptocurrency trading]is 100% a speculative activity and I still hold the view that it should be banned…because if it is allowed to grow, If you want to regulate and grow it, mark my words., the next financial crisis will come from private cryptocurrencies.”
The central bank governor said countries should adopt CBDCs over cryptocurrencies to reduce the need to print fiat currencies and support expedited international transactions, according to the report.
India is one of several countries working on CBDC projects. Reports have revealed that the country’s top bank was considering introducing a digital version of the Indian Rupee.
The Asian country began retail testing of the digital rupee in select Indian cities on December 1st.
India’s Anti-Crypto Stance
Some cryptocurrency insiders have criticized India’s stance on cryptocurrencies.
Cardano founder Charles Hoskinson recently lamented that India’s tough crypto stance is making it harder for blockchain networks to penetrate the market.Hoskinson Said:
“India is strongly opposed to cryptocurrencies and the government has tried many times to outright ban and criminalize the use of cryptocurrencies. seems necessary.”
India has taken a tough stance on the cryptocurrency industry. The Asian country has implemented her 30% capital tax increase on cryptocurrencies and several other tax measures designed to discourage cryptocurrency trading activity.
The champion CBDC first appeared on CryptoSlate after the Governor of the Central Bank of India called for a ban on cryptocurrencies.