RBI Governor Raises Red Flag On Cryptocurrencies, Calls It A Concern At Macroeconomic Level

Reserve Bank of India (RBI) governor Shaktikanta Das raised warnings on cryptocurrencies, cautioning investors on the possible risks of the digital currency.

Read More About AI News : WalkMe and SAP Concur Partnership Delivers Concur User Assistant by WalkMe

Cryptocurrencies are an area of concern at the macroeconomic level and financial stability point of view, as well Das said on Wednesday.

Das shared his views at Business Standard’s BFSI Summit.

“We have given our detailed suggestions, as far as I know, the matter is under active consideration of the government and the government will decide,” he said on how the issue has to be catered.

Shaktikanta Das’s comments come at a time when Indian investors have shown great interest in the cryptocurrency frenzy, especially the retail ones.

The Supreme Court had invalidated RBI’s order which was meant to impose a ban on cryptocurrency trading in India. With the supreme court order, the craze in India about digital currency is ceaseless.

The union government is yet to come up with a definite law on cryptocurrencies after consulting industry experts and discussing it with various officials and ministers.

In cryptocurrencies, Bitcoin and ether prices today saw a fall after surging to record highs on Tuesday as both the digital token currencies retreated from their highs. Both have gained about 70% versus the dollar since the beginning of October, having more than doubled since June.

Browse The Complete News About AI : Rad AI Closes $25 Million Series A To Transform Radiology Workflow By Harnessing The Power Of Artificial Intelligence

The world’s most valuable cryptocurrency by market capitalization declined by 1% at $67,089. The digital asset market, which has been around for a little more than 10 years, has nearly doubled in value since its year-end value in 2020. Year-to-date, Bitcoin has risen by more than 131 percent (YTD).

The total value of all cryptocurrency assets has crossed the valuation of $3 trillion, according to Bloomberg News.

Commenting on the situation of the Indian economy, Shaktikanta Das said he sees a positive outlook in terms of the growth of the economy,  not forgetting the Covid uncertainty.

Shaktikanta Das further said the market evolution of interest rate looks orderly while expressing the conviction that adequate forex reserves will act as a shield to deal with volatility.

On the investment scenario, Das said some signals are indicating investment pick-up and that demand for bank credit will also see a raise from next year onwards.

The RBI chief also mentioned that globally geopolitical tensions are also an imminent challenge for which the regulatory body must keep itself prepared.

Top AiThority.com Insights: WalkMe and Deloitte Enter Strategic Alliance to Deliver Exponential Value to Enterprise Digital Transformation Initiatives

[To share your insights with us, please write to sghosh@martechseries.com]