“Cryptocurrencies Are Big NO To CBDC”, Says RBI Governor

• RBI Governor rejects cryptocurrencies, praises blockchain’s role in CBDC trial.
• Tokenization is praised for democratizing access to high-value assets, and fostering ownership.

In a recent candid interview with a popular media platform, the Reserve Bank of India (RBI) Governor, Shaktikanta Das made it clear that cryptocurrencies are a firm “no” for the central bank. However, he didn’t shy away from acknowledging the merits of blockchain technology, particularly in the RBI’s Central Bank Digital Currency (CBDC) trial.

“The underlying technology has been there. It will be there. We are using blockchain in our CBDC trial project,” the RBI Governor stated confidently. While praising blockchain’s versatility, he highlighted its necessity for growth. Tokenization, a process he deemed crucial, was noted for democratizing access to high-value assets, allowing the average individual to partake in ownership.

Why?

Despite recognizing blockchain‘s potential, the Governor drew a sharp line between technology and what he referred to as the “speculative product” – cryptocurrencies. He voiced apprehension about the risks associated with the highly speculative nature of trading these digital assets. Also, cautioned against their mischaracterization as traditional investments. “The product is a highly speculative activity. It has downsides that can pose risks to financial stability,” he warned.

Moreover, the recent remarks by the RBI Governor have ignited a spirited debate within the netizens’ community. It reflects two distinct perspectives on the safety and potential of the cryptocurrency market.

On one side, there is a faction that finds it hard to swallow the characterization of the crypto market as still  “unsafe.” They argue that with proper regulation and oversight from the government, the perceived risks associated with cryptocurrencies can be mitigated. It can foster a safer environment for investors and enthusiasts alike.

Meanwhile, another segment of netizens appreciates the RBI’s cautious approach. Recognizing the need to differentiate between the transformative growth of blockchain technology. And the potential hazards of cryptocurrency trading. This group sees the central bank as a prudent observer in the dynamic realm of digital assets. It navigates the landscape with a measured perspective.

As the crypto space continues to evolve, these differing opinions highlight the ongoing dialogue between those advocating for a secure crypto ecosystem under government regulation.