RBI Governor Warns About the Crypto Risks

• The FSR 2022 records various statements highlighting the risks in the crypto market.
• 1% tax on crypto transactions reduced the volume of trading to 50% quantity.

By June end, the Reserve Bank of India (RBI) released its annual financial stability report (FSR) 2022, where the RBI governor warned everyone stating cryptocurrencies are a clear danger. He added the reason for this belief to be the value derivation of crypto, which is not supported by any asset or organization beneath the level.

Shaktikanta Das, RBI governor, has always been vocal about the darker side of cryptocurrency. In the last year’s financial budget, the finance minister, Nirmala Sitharaman declared that RBI will launch the Central Bank Digital Currency (CBDC) which will be functioning over blockchain technology in the next financial year. Das raised his concerns to the government even there. 

RBI governor stated:

“We have flagged certain concerns around crypto-currencies which are being traded in the market. We have flagged certain major concerns to the government, and it is still under examination in the government and the government will come out with a decision or sooner than later.”

Cryptocurrency and RBI

The situation of the crypto market is getting worse day by day in India, the recent 1% tax on all crypto transactions has just reduced half the amount of trading volume in major exchange platforms. The investors are yet to regain themselves from the last 30% taxation on crypto profits by the government.

The RBI governor seems to suspect the increase in the crypto ecosystem will be directly proportional to the risks associated with it. And he opinionated, so-called stablecoins that promise to peg to certain fiat’s value have to be watched over distinctly.

Recommended For You