Crypto Crash: RBI Governor Shaktikanta Das Warns Cryptocurrency Will 'Seriously Undermine' Financial Stability Of India

RBI Governor Shaktikanta Das asserted that the underlying value of cryptocurrency is “nothing.” 

RBI has always taken a strong stand against cryptocurrencies.

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New Delhi: The crypto market has lost over $1.5 trillion since November 2021 and nearly $500 billion in May so far. The recent meltdown has been largely attributed to the collapse of Terra (LUNA), which was caused due to the ‘de-pegging’ of the TerraUSD (UST) stablecoin. Commenting on the recent market crash, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday, “We have been cautioning against crypto and look at what has happened to the crypto market now.”

RBI maintains a strong stance against crypto

The central bank of the country has always taken a strong stand against cryptocurrencies. Speaking on the crypto crash and regulation of such assets during an interview with CNBC TV18, Das said, “Had we been regulating it already, then people would have raised questions about what happened to regulations.” 

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He added, “There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial, and macroeconomic stability of India.”

Das asserted that the underlying value of cryptocurrency is “nothing.” 

RBI governor believes the government shares the bank’s stance on crypto

Das said that the central bank has conveyed its position to the Indian government “and they will take a considered call.” Noting that the government is also “equally concerned,” Das said, “I think the utterances and statements coming out from the government are more or less in sync.”

Last week, top RBI officials reportedly told a parliamentary panel that cryptocurrencies can lead to the “dollarisation” of a part of the economy, which would be against India’s sovereign interest.