I don't think world, especially EMs, can afford a 'cryptomania', says RBI Governor at Mint BFSI Summit
- Reserve Bank of India Governor Shaktikanta Das reaffirmed the central bank's stance on crypto, citing the risks it poses to the world and emerging markets.
Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said the central bank's stance on cryptocurrency remains unchanged. “The RBI's position on cryptocurrency remains unchanged. Travelling down that path will create huge risks. I don't think the world or emerging markets (EMs) can take a crypto mania like the Tulip mania,” Governor Das said during the Mint's BFSI Summit.
Last year too, the RBI governor said the central bank's stance on banning crypto assets remained unchanged. Das has always called cryptocurrencies a "serious threat to financial stability for all countries, especially for emerging markets".
"How will you regulate it, whom will you regulate, and what will you regulate?" he asked those tasked with regulating this burgeoning industry. He referred to a recent International Monetary Fund (IMF) paper, which acknowledged the need for countries to consider imposing additional restrictions on cryptocurrencies.
At the Mint BFSI Summit, Governor Das lauded private companies for their role in making India a world leader in the UPI payment system.
"The digital lending guidelines have been well accepted. The fintech sector is growing and will grow but it needs to grow sustainability and that is our emphasis," Das said during the Mint BFSI Summit.
With the recent spike in fraudulent lending apps, the RBI governor said they are working with the government and the ministries concerned for appropriate measures against suspicious applications.
Governor Das said the robustness of the IT system and cyber security threats can be a challenge for banks. "We are working tirelessly towards further strengthening India's banking system and the overall financial system," he noted.
During the Mint BFSI Summit, Governor Das also mentioned the central bank's plan for Central Bank Digital Currency (CBDC).
"We are expanding wholesale CBDC and exploring the potential for programmable features in retail CBDC to enable senders to define specific end uses," Governor Das said.