new Delhi. Investing in cryptocurrencies is becoming a fashion these days. Many people who know about financial matters believe that this is not an investment but a complete speculation. If this is allowed to escalate, it could become the cause of the next financial crisis. Reserve Bank of India (RBI) Governor Shaktikanta Das gave this warning on Wednesday. He also demanded a ban on instruments like bitcoin. Das has been a staunch opponent of such instruments and the RBI has taken the issue to the Supreme Court. He said at an event that cryptocurrencies involve huge risks related to economic and financial stability and we have always been informed about this.
How Suddenly Cryptocurrency Valuations Dropped Rapidly
RBI i.e. Reserve Bank of India has been warning investors about the potential dangers of cryptocurrencies in the past. Even before this, the RBI governor has spoken about the dangers posed by such instruments, given the developments of the last one year. These include the collapse of cryptocurrency exchange FTX, one of the largest financial frauds in US history.
Along with this, Das also said, after all this, I do not think we need to say anything more about our stand. The valuation of private cryptocurrencies has dropped from US$190 billion to US$140 billion. He said that basic economic activity in India remains strong, but external factors will cause some ‘loss’ to the economy.