Cryptocurrency trade is similar to gambling and should be banned, says RBI governor
However, Shaktikanta Das said that the technology of blockchain needs to be supported as it has many other applications.
Reserve Bank of India Governor Shaktikanta Das on Friday said that cryptocurrency trade was similar to gambling and it should be banned, reported PTI.
“RBI’s position is very clear, all cryptos should be banned,” Das said at an event in Mumbai, reported Business Today. “However, the technology of blockchain needs to be supported as it has so many other applications.”
Blockchain is transaction-recording computer database that is stored in several different places at once. The technology offers features like authentication through computerised cryptography which provides a mechanism for secure exchange of funds.
On Friday, Das also expressed concerns on the volatility and speculative nature of the value of cryptocurrencies.
“The volatility in prices is based on the make-believe concept where a particular crypto’s price can go up or down,” Das said. “So, anything that comes without any underline whose valuations is entirely dependent on make-believe is just 100% speculation or it can be bluntly termed as gambling.”
By allowing cryptocurrency transactions in the country the central bank will also lose control over significant money supply in the economy since most of the trade is done in dollars, Das said.
Das pointed out that with the world’s second-largest cryptocurrency firm FTX filing for bankruptcy in November, it can be said that the future of digital currency looks bleak.
In December, the RBI had launched a pilot run for an official digital rupee. The central bank said that users would be able to make transactions with e-rupee through a digital wallet offered by the banks that are part of the pilot run and stored on mobile phones or devices.