RBI Governor Shaktikanta Das has termed cryptocurrency a clear danger and stated that it is nothing more than a sophisticated name for speculation.
“Cryptocurrencies are a clear danger. Anything that derives value based on make-believe, without any underlying, is just speculation under a sophisticated name. While technology has supported the reach of the financial sector and its benefits must be fully harnessed, its potential to disrupt financial stability has to be guarded against,” the Governor stated in the foreword of the RBI’s Financial Stability Report, June 2022.
Das also noted that as the financial system becomes more digitalised, cyber risks are growing and require special attention.
“Overall, the financial stability risks to the Indian economy are skewed towards global spillovers and geopolitical tensions. Nevertheless, the Indian financial system exhibits underlying robustness and resilience to withstand these shocks,” he added.