Shaktikanta Das, Governor of the Reserve Bank of India (RBI), issued a warning against cryptocurrencies on Thursday, saying it posed a risk to financial stability. The governor warned investors that they are investing at their own risk.
According to the Governor of the Reserve Bank of India, cryptocurrency is a privately generated asset.
Cryptocurrency is privately manufactured, and it poses a danger to financial stability as warned by the Governor of the Reserve Bank of India.
The governor warned investors that such assets had no underlying value, not even a tulip.
The statements are a reiteration of past institutional worries about such assets, but they take on added weight because they come only days after the Union Budget imposed a 30% tax on gains earned on such assets.
The cryptocurrency community applauded the move as “legitimizing” their industry.
Private cryptocurrencies, or whatever you want to call them, pose a danger to our macroeconomic and financial stability. They will jeopardize the RBI’s capacity to address concerns of financial and macroeconomic stability, Das said to reporters.
He went on to say that it is his “responsibility” to warn investors and remind them that they will be investing at their own risk.
They also need to keep in mind that the cryptocurrency has no underpinning, not even a tulip, Das added, using a historical backdrop to make a point about the value of such products.
Also, the Reserve Bank of India (RBI) suggested on Thursday raising the ceiling on e-RUPI vouchers issued by the national and state governments from Rs 10,000 to Rs 1,00,000 per voucher. The central bank has also recommended allowing such e-RUPI coupons to be used many times until the entire value of the voucher is redeemed.
This was said by RBI Governor Shaktikanta Das today while delivering the monetary policy review conclusion.