Crypto is nothing but gambling: RBI governor Shaktikanta Das

Crypto is nothing but gambling: RBI governor Shaktikanta Das

While Addressing a media event, Das called for a ban on cryptos, saying there is no underlying value in it. Those supporting it call it an asset or a financial product, but there is no underlying value in it, he added.

“The volatility in prices is based on the make-believe concept where a particular crypto’s price can go up or down. So, anything that comes without any underline whose valuations are entirely dependent on make-believe is just 100 per cent speculation or it can be bluntly termed as gambling.”

“Every asset, every financial product has to have some underlying (value) but in the case of crypto, there is no underlying value. So anything without any underlying, whose value is dependent entirely on make-believe, is nothing but 100 per cent speculation or to put it very bluntly, it is gambling,” he said.
“Since we don’t allow gambling in our country, and if you want to allow gambling, treat it as gambling and lay down the rules for gambling. But crypto is not a financial product,” Das added.

“Cryptocurrencies have the potential to become a means of exchange for doing a transaction. Most of it is dollar-denominated and if one allows it to grow, which means 20 per cent of the transactions is happening through crypto, that means it is not happening by the central bank and it is issued by private companies all over the world.”

If the transactions start happening via crypto, then RBI will lose control over the money supply in the economy. “RBI’s authority to decide on monetary policy and the level of liquidity that needs to be maintained will be undermined. It will lead to the dollarisation of the economy.”

 

 

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