Washington : Reserve Bank of India i.e. RBI Governor Shaktikanta Das has said a big thing regarding cryptocurrency. He has said that cryptocurrencies can prove to be the biggest risk to financial stability and currency stability. RBI Governor Shaktikanta Das has emphasized on this and said that due to this, such a situation may arise in future, which may be very difficult to control. He has also said that due to this RBI may lose control over the currency supply in the economy.
Das has said that I believe that this is something that should not be allowed to dominate the financial system. This poses a huge risk to financial stability. This poses a huge risk to monetary stability. It can also pose a threat to the banking system.
control on money supply
He said at the leading think-tank Peterson Institute for International Economics that it could also create a situation where the central bank i.e. RBI would lose control over the money supply in the economy. Das said that if the central bank loses control over the money supply in the economy, then how will the cash available in the system be checked.
RBI controls
He further said that in times of crisis, the central bank controls inflation by controlling the money supply. Therefore, we view crypto as a bigger risk. In response to a question, he said that there should be an international understanding on this, because it involves cross-border transactions.
Also read: Adani Group made the highest bid to acquire KSK Mahanadi Power.
Government should also be aware
The RBI Governor has said that one should be fully aware of the big risks associated with cryptocurrencies. I think this should not be encouraged. “This opinion is not very popular, but I think it is a major concern for central banks around the world as guardians of financial stability.” Das also said that governments are also becoming increasingly aware of the potential downside risks in cryptocurrencies.
(with agency input)
Comments are closed.