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RBI Sees Massive Risks in Crypto

Governor Shaktikanta Das believes serious discussions are the need of the hour.

The Governor of India’s central bank, the Reserve Bank of India, Shaktikanta Das expressed “serious concerns on macroeconomic and financial stability” about the impacts of crypto-assets while speaking at the SBI Banking And Economics Conclave.

He brushed aside the mind-boggling numbers of crypto adoption and called them “exaggerated”. Coin Crunch India had also reported that the speculation that India has over 10 crore crypto users is bogus.

But it does not stop spreading.

Furthermore, he revealed that he is not “privy” to what the Parliamentary Standing Committee on Finance has discussed and refrained from commenting on it.

Governor Das believes that “serious discussions” are the need of the hour. He has vouched for blockchain technology but has reservations about digital assets and their impact on the economy.

Discussions between regulators and industry players have been infrequent. Monday’s meet, between the Parliamentary Standing Committee on Finance and the crypto industry associations and experts, was a landmark juncture in India’s crypto history.

Regulations can’t be framed in just a day or even in a month. They will take frequent deliberations and experiments to arrive at.

Given the far-reaching impact of crypto assets, it could take several rounds of discussions before a conclusion is reached.

Cryptocurrencies have proliferated in a largely uncertain ecosystem. With a regulatory framework in place, they can create new opportunities for entrepreneurs. But adoption of crypto assets as legal tender by every country is highly unlikely. El Salvador may have adopted Bitcoin as a legal tender, but every country and its economy is different. So, different countries will take a different approach towards crypto assets.

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