Head of the Central Bank of India: private cryptocurrencies can cause the next financial crisis

Reserve Bank of India Director Shaktikanta Das declaredthat the next global financial crisis could be triggered by private cryptocurrencies like bitcoin and other non-government crypto assets.

“Such cryptocurrencies have increased risks for macroeconomic and financial stability,” the head of the Central Bank noted, citing the recent collapse of the large FTX crypto exchange as an example. “If such private cryptocurrencies are indeed 100% speculative assets, then such activities should be banned. If such operations are allowed to grow, even if they are only regulated and thus allowed to grow, mark my words – the next financial crisis will be caused by such private cryptocurrencies.

Mr. Das expressed his position in relation to private cryptocurrencies against the backdrop of the implementation of the initiative of the Central Bank of India to issue an electronic rupee. December 1st in India launched a pilot project of the Central Bank’s digital currency (or digital fiat currency, CBDC). The Indian authorities intend to introduce the use of the digital rupee in a number of major cities in the country, users will be able to pay with this currency through the application and mobile wallets.

Evgeniy Khvostik