Next financial crisis may come from cryptocurrency
Next financial crisis may come from cryptocurrency: RBI Governor Das said 'It has no concrete value, it should be banned'
RBI Governor Shaktikanta Das has described cryptocurrencies like bitcoin as a threat to the Indian economy. Speaking at the BFSI Insight Summit organized by Business Standard, Shaktikanta Das said that the next financial crisis may come because of these.
RBI governor says that it has no underlying value. Furthermore, private cryptocurrencies are a major threat to financial stability. Private crypto means that they are not controlled by any central regulator. He said that they should be banned.
Stating the data, Shaktikanta Das said that the value of cryptocurrencies is now USD 140 billion. This year its valuation has declined by about US $ 40 billion.
Talking about E-Rupee (CBDC), Das said that it is the currency of the future. This will take India to the forefront of digital currency in this century. The pilot project of the retail digital rupee (e-rupee) was launched by the RBI on 1 December. In the pilot project, the entire process of digital rupee creation, distribution and retail use will be closely examined.
On inflation, Das said there has been a "very coordinated effort" between the government and the central bank to control inflation. He further said that some of our previous estimates on inflation and growth have been almost accurate.
Retail inflation (CPI) has come down to 5.88% in the month of November. This is the lowest level in 11 months. Inflation in December 2021 was at 5.59%. Since then it was continuously above 6%.