Shaktikanta Das, the governor of the Reserve Bank of India (RBI) has just released a statement regarding cryptocurrencies.
He has stated that the central bank of India has a strong stance when it comes to cryptocurrencies. Cryptocurrencies must be banned for good.
Das made the statement while giving an interview with one of the local business reporting news agencies. It was on Friday when Shaktikanta made a statement about the RBI’s stance on cryptocurrencies.
RBI’s Viewpoint laid Out by Shaktikanta Das
The governor of the RBI stated that their bank wants nothing to do with cryptocurrencies. They are well aware of the risks and dangers involved in dealing with cryptocurrencies.
Investors are always at risk of losing funds and money to cryptocurrencies with no hopes of retrieving them. The crashes such as the Terra Network and the FTX exchange have really made it clear what the nature of the crypto industry is.
The cryptocurrency industry has lost all the trust it had after these major crashes in the year 2022. The cryptocurrency industry can no longer regain the name it used to have in the past.
They are worried about the funds and personal information of the locals connected with the world of cryptocurrencies. These people are always at risk of losing their funds and private information to crypto scammers and fraudsters.
According to Das, the central bank does not want to go with the possibility of letting a few cryptocurrencies operate and ban the rest.
Its point of view is that all cryptocurrencies must be banned in India. Whether it is Ether (ETH), Bitcoin (BTC), or any other cryptocurrency, it must be banned in the country.
This way, all the investors will be safe and protected from any kinds of scams or frauds that may take place with respect to cryptocurrencies.
Scam Situation in India
India is known for being a country where scams and frauds have always been on the rise. The country is known for having many centers solely running scams and frauds, defrauding millions of people from the west.
With the inception of cryptocurrencies in India, fraudsters have gained the opportunity of running scams within the country.
As a result, scams have been on the rise, and apparently, there is no end to it. In recent months, many local IT specialists have been found guilty of running crypto-related scams.
This is more of a reason for the regulatory authorities in India to grow concerned about the dealings of cryptocurrencies in the country.
Based on the above-mentioned facts, Das made it clear that the RBI still stands with the view that cryptocurrencies must be banned in the country.
More Reasons for Banning Crypto
Das went on to talk about the nature of cryptocurrencies in the real-time world. He stated that the most alarming part about cryptocurrencies is that they have no physical status at all.
They do not have any kind of underlying value, making them a highly risky asset that must not be dealt with under any circumstances.
Something that has no physical status or existence can vanish all of a sudden and no one will be able to do anything about it.
This is exactly what the investors had to face when the Terra and the FTX crashes took place. People were left in shock as they saw the trading prices of UST, LUNA, and FTT tokens plunge all of a sudden.
To this day, the investors have not been able to recover their funds because there was never a guarantee of their physical existence or insurance.
Das stated that nowadays, people like to call cryptocurrencies as they are some sort of financial product. In order to be financial products, they have to have legal and regulated status.
For now, cryptocurrencies have no legal or regulated status in the country and they may not have any until they have a physical status.