Shakanta Das, governor of the Reserve Bank of India (RBI), described cryptocurrencies as an “obvious hazard” with the potential to damage financial stability.
In the prologue to the RBI’s most recent report on financial stability, issued on Thursday, Das stated, “Anything that gets value from pure fantasy, without any foundation, is really speculation under a fancy name.”
The Reserve Bank of India has repeatedly cautioned against cryptocurrency investments, and one of its deputy governors has called for a complete prohibition.
Das said that global spillovers and geopolitical tensions disproportionately affect the Indian economy’s financial stability.
Das said, “The chances of stagflation are increasing.” “With no resolution in sight in the near future, it is essential for every economy to battle rising inflation while taking into account the growing needs of the economy. The game of balancing has grown much more precarious.”
Das said that the chances for the global economy are clouded by the conflict in Ukraine and continue to be influenced by the emergence of the Covid-19 epidemic.