RBI Governor Shaktikanta Das Reaffirms Stance Citing Recent Crypto Crash

• The RBI has not reportedly placed any shadowban on exchanges.
• The influence of cryptocurrencies on India’s macroeconomics has been frequently raised.

As the cryptocurrency market continues to plummet, RBI governor Shaktikanta Das reaffirmed the central bank’s view that investors and the government should avoid investing in cryptocurrencies.

During an interview with CNBC-TV18, Das stated the following:

 “We have been cautioning against crypto and look at what has happened to the crypto market now. Had we been regulating it already, then people would have raised questions about what happened to regulations.”

No Underlying Value: Not Even a Tulip

Moreover, he feels that the government seems to be in agreement with the regulator’s position that cryptocurrencies do not have any underlying value. When asked about cryptocurrency’s fundamental worth, the central bank governor said: “not even a tulip.” According to T Rabi Sankar, the deputy governor of the Reserve Bank of India, there is no option to prohibit cryptos since they are worse than Ponzi schemes.

Coinbase’s CEO Brian Armstrong recently claimed in the company’s earnings conference that the exchange had to deactivate the Unified Payments Interface (UPI) on its platform days after its massive India debut owing to some informal pressure from the RBI.

The RBI, on the other hand, has not reportedly placed any shadowban on cryptocurrency exchanges, according to sources. The Reserve Bank of India (RBI) originally intended to outlaw cryptocurrencies in India when Bitcoin was just getting started in the country. Although the Supreme Court lifted its prohibition on cryptocurrencies in 2018, the RBI has kept a tight grip on digital assets ever since. The influence of cryptocurrencies on India’s macroeconomics has been frequently raised.