Mumbai – There is a lot of craze for cryptocurrency globally. Many people prefer to invest in it instead of stocks. However, it is not a legal currency. Despite this, people invest in it. This currency is not legal in India either.
RBI Governor Shaktikanta Das attended the think-tank program organized at the Peterson Institute for International Economics. In this program, he talked about how cryptocurrency is becoming a challenge.
Reserve Bank of India Governor Shaktikanta Das says that cryptocurrency should be banned. It has a bad effect on the economic condition of the country. Recently Shaktikanta Das said that cryptocurrency will have an impact on the money supply. If people were more inclined towards crypto, then the central bank could lose its control over the money supply. He also said that crypto is a threat to monetary stability along with financial stability.
Shaktikanta Das said that I am in favor of banning something when it is not acceptable in the financial system. If it is not stopped in time, it can be very risky financially.
If the central bank loses control over the money supply, it has a direct impact on the country’s economy. After this happens, the central bank cannot check the liquidity of the financial system. Apart from this, inflation in the country will also reach its peak.
Responding to a question, he said that we see crypto as a big risk. In today’s time, crypto transactions are cross-country.
Highlighting the risk of crypto, Das said that there is a need to take a decision on this at the international level. Actually, transactions with crypto are happening globally. This is very risky not only for one country but for everyone. In such a situation, all countries should unite and take a decision against crypto.
Das further says that if the trend of crypto continues to grow like this, it will affect all the central banks of the world. The government is gradually becoming cautious about the risks posed by crypto.
This year the G-20 summit was held in India. In this summit, India was the first country to raise questions about crypto currency and risk. It was decided in the G-20 summit that the ecosystem of cryptocurrency will be understood with international understanding.
Shaktikanta Das said that RBI is the first central bank to highlight the risks of crypto. It is a risk to the financial system of every country. This is a valid reason why it should be completely banned. In such a situation, we are saying that we should deal with crypto very carefully. However, this is only India’s decision. All other countries should take a decision at their own level.
