RBI chief: ‘Adoption of private cryptocurrencies could spark a global financial crisis’

The Governor of the Reserve Bank of India (RBI) has warned that speculation and the massive use of unsecured private cryptocurrencies could spark a global financial crisis. Speaking at the Business Standard BFSI Insight summit, Shaktikanta Das said that the massive transition to private digital currencies and the inability of government regulators to effectively manage this process could provoke a global financial crisis. “The main problem is that private cryptocurrencies have no underlying value.. This is a 100% speculative activity that comes with huge and inherent risks to macroeconomic and financial stability,” added the head of the RBI. Das stated that the Reserve Bank of India refuses to recognize private cryptocurrencies and has repeatedly issued warnings against trading in them. The head of the RBI is confident that if the authorities offer their citizens an alternative in the form of tokens tied to fiat money, they will be able to maintain control over the financial system. In his opinion, central bank digital currencies (CBDC), which Das calls for adoption for the needs of digital banking, can become an alternative. Shaktikanta Das said that the Reserve Bank of India is working on creating its own cryptocurrency and expects to gradually integrate the digital rupee into the country's financial system, with the involvement of companies, private banks and ordinary consumers.