India’s central bank, the Reserve Bank of India (RBI), still has “serious concerns” about cryptocurrency from a macroeconomic and financial stability standpoint. Shaktikanta das, RBI Governor, says that he has doubts about the claims made by media outlets regarding the Indian crypto-investors.
RBI Expresses Serious Concerns about Crypto. Governor doubts veracity in Media Reports regarding Crypto Sector
The governor of the Reserve Bank of India (RBI), Shaktikanta Das, reiterated that the central bank still has “serious concerns” about cryptocurrencies at Business Standard’s BFSI Summit this week. According to local media, he said:
From a macroeconomic stability and financial stability perspective, cryptocurrencies pose a grave concern for RBI.
He added that the central bank has “given our detailed suggestions” regarding cryptocurrency to the government, which is now “actively looking at the issue and will decide on it.” However, the central bank governor noted, “But as the central banker, we have serious concerns about it and we have flagged it many times.”
On several occasions, the RBI voiced concerns about cryptocurrency. In September, Das similarly said: “We have serious, major concerns on cryptocurrency with respect to financial stability, [and] have conveyed the same to government of India.”
Indian officials are currently working to regulate crypto. According to reports, a finance ministry official recently said that the government is trying to “fast track” a cryptocurrency bill to be introduced in the winter session of parliament.
Governor Das also questioned the numbers of Indian crypto-investors and the size reported by media.
“I am not sure about the veracity of these numbers. Of course, my view may not be fully right as we don’t get full information about these currencies as they aren’t regulated by us or by any other central bank,” he described, elaborating:
I believe the numbers of investors are exaggerated. A majority, or 70% of the total, has only invested Rs 1,000 per coin in cryptocurrency.
Das stated that many people invest only Rs 1000 ($13.43), which suggests there might be an effort to get as many people on crypto exchanges.
Crebaco estimates that there are approximately 105 million Indians investing in crypto assets. According to Crebaco, Indians invested about $10 billion in crypto investments. 20% of these crypto investors were between 18-20 years old.
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