In a recent interview, the governor of the Reserve Bank of India (RBI), Shaktikanta Das talked about the downfall of the crypto market due to the recent LunaUST crash and the regulation of the crypto industry.
The RBI and the Indian government have repeatedly warned citizens against investing in the cryptocurrency industry.
Keeping in mind the market crash due to the collapse of Luna and stablecoin UST the governor says, “We have been cautioning against crypto and look at what has happened to the crypto market now.”
He continues, “Had we been regulating it already, then people would have raised questions about what happened to regulations.”
The crypto market suffered major losses due to the LunaUST de-pegging event. Thousands of investors across the globe lost money.
Talking about cryptocurrency, the governor states, “That is one thing whose underlying (worth) is nothing.”
“There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial and macroeconomic stability of India.”
Mr.Das also believes that the Indian government shares the same viewpoint as the RBI on cryptocurrencies.
Read Also: RBI Officials Say that Crypto can Lead to ‘Dollarisation’ of the Economy
He said, “We have conveyed our position to the government and they will take a considered call. I think the utterances and statements coming out from the government are more or less in sync. They are also equally concerned.”
Recently, Coinbase CEO Brian Armstrong revealed that the crypto platform disabled the UPI service option due to “informal pressure” from the RBI. When asked about these allegations, the governor said, “I would not like to react on speculative observations made by individuals outside.”
Currently the Indian crypto sector is completely unregulated. The Indian Finance Ministry is conducting meetings with different entities such as the IMF, World Bank, Reserve Bank of India, and Securities and Exchange Board of India (SEBI).
The ongoing consultations can lead India to form a policy and framework on the digital asset class for its fruitful expansion in the country.
