RBI Has Serious Concerns Over Cryptocurrencies, Asserts Shaktikanta Das

TPI Staff November 11, 2021

92 1 minute read

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Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday reiterated his concerns over financial instability and said the government is actively considering its recommendations.

“People are doing a certain activity; As a central bank we have serious concerns from the perspective of macroeconomic and financial stability,” Economic Times quoted Das as saying while speaking to a financial publication.

“We have given our detailed suggestions to the government to deal with this issue. As far as I know, the matter is under consideration of the government and it will decide.”

The governor said the superficial demand and publicized interest in cryptocurrencies is likely to be exaggerated, and potentially a marketing ploy to attract more people to the new asset class, which has yet to be approved by the central bank.

“In terms of the amount invested, it is definitely increasing and unsurprisingly we hear a lot of things,” he said.

“But I am not sure about the numbers that are being quoted. Because, from all the information we have, I can say with great confidence that the number of participants in the crypto market seems exaggerated.”

As per the ET report, most of the crypto investors have invested between Rs 1,000 and Rs 3,000. Das said that efforts are being made to nominate more and more people.

According to an earlier ET report on November 1, Indian investments in cryptocurrencies have touched the $10 billion mark in the past few months. Currently, around 105 million citizens, or 7.9% of Indians, have invested in cryptocurrencies through Indian exchanges, the publication mentioned citing data compiled by CREBACO, a research firm.