According to a local media outlet, Shaktikanta Das, Governor of the Reserve Bank of India, cryptocurrencies He reiterated that he thought there was no underlying value.
Das said he believes crypto assets can “seriously undermine” the country’s financial system.
head of the country’s central bank, bitcoin and pointed to the recent correction in the market to support his views on cryptocurrencies.
Das emphasized that the central bank agrees with the Indian government on cryptocurrencies.
Central banks around the world maintain their tough stance on cryptocurrencies. Last week, Sweden’s Riksbank announced that Bitcoin was not money, while European Central Bank President Christine Lagarde claimed that crypto money was worthless.
Regulatory Uncertainty Continues in India
Last month, Indian Finance Minister Nirmala Sitharaman announced that it would take more time to complete the country’s legislation on cryptocurrencies. The minister also expressed that he is aware of the promising potential of Blockchain, the technology that underpins crypto assets. Sitharaman also mentioned that crypto assets can be used for malicious purposes such as money laundering.
India’s approach to regulating cryptocurrencies was recently praised by IMF Managing Director Kristalina Georgieva.
There is still no consensus on how the industry should be regulated in India. In February, central bank official T. Rabi Sankar claimed that a general ban on cryptocurrencies would be the “optimal” choice.
The CEO of CoinSwitch, one of the largest crypto exchanges in the country, recently called for regulation in the country.
*Not investment advice.