Reserve Bank of India (RBI) Governor Shaktikanta Das has issued a warning expressing his concern about the cryptocurrency. He has warned investors of the dangers associated with crypto. Shaktikanta Das said on Friday that cryptocurrencies can cause serious concern from the point of view of macroeconomic and financial stability.
A comment by Shaktikanta Das comes at a time when Indian investors, especially retail investors, are showing great enthusiasm for cryptocurrencies. The ban on cryptocurrencies in India was lifted after the Supreme Court overturned the RBI order. Since then, there has been a huge attraction among investors regarding crypto in the country.
The central government has not yet made any law or rule regarding cryptocurrencies in the country. For this, only consultations are going on between industry experts, ministries and all the officials. After all the warnings, it seems that the government wants to keep a strict control on the trading of cryptocurrencies keeping in mind the interest of the common people.
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Looking at different cryptocurrencies, the prices of bitcoin and ether have seen a decline today after a strong rally on Tuesday. Both of these have seen a doubling since June and have seen an increase of 70 percent against the dollar since the beginning of October.
Shaktikanta Das raised his objections about cryptocurrencies on Wednesday. Governor Shaktikanta Das reiterated his views on not allowing cryptocurrencies, saying that cryptocurrencies do not come under the purview of central banks around the world. In such a situation, cryptocurrencies can prove to be a big threat to any financial system.
The RBI Governor’s statement comes ahead of the forthcoming report of the Reserve Bank’s internal committee on cryptocurrencies. This report is expected next month. During this, while talking on the economy, he said that India’s growth story is on track. Despite the uncertainty associated with COVID-19, the outlook of the economy looks very good. Investment activities in the country seem to be picking up. Next year will see an increase in the credit demand of banks. However, he also said that the growing geopolitical tension at the global level is emerging as a new challenge. We should keep an eye on this.
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