India’s Central Bank Governor Warns Crypto Market Could Fall and Retail Investors Will Lose Money – Markets and Prices Bitcoin News

India’s Central Bank Governor Warns Crypto Market Could Fall and Retail Investors Will Lose Money – Markets and Prices Bitcoin News

RBI Governor Shaktikanta Das has warned that the crypto market may fall and small investors will lose money. He added that the central bank believes its warnings have deterred many people from investing in cryptocurrencies.

RBI Governor’s Crypto Warnings

Governor of India’s central bank, the Reserve Bank of India (RBI), Shaktikanta Das, cautioned against investing in cryptocurrencies in an interview with ET Now earlier this week.

Noting that the RBI has on several occasions warned investors about the risks of investing in cryptocurrencies, Das said, “I am happy that we have sounded those warning signals and I would like to believe that a large number of people would have heeded the warning signals and concerns expressed by the Reserve Bank. ” he added:

I would like to believe… that a lot of people haven’t invested in cryptocurrencies or have sort of pulled out of cryptocurrencies due to the cautions and concerns that have come from the Reserve Bank.

“Crypto, you know, we’ve said before, can create a lot of financial instability in terms of the central bank’s ability to set monetary policy,” the RBI governor continued. “It will also have a negative impact on our exchange rate, on capital flows, on the stability of the banking sector.”

Furthermore, Das warned that cryptocurrency has “the potential to be used as a tool for money laundering and for illegal money transfer.” He also reiterated his earlier statement: “In fact at one point I said it has no basis, not even a tulip.”

The Governor of the Reserve Bank of India believes:

Something that doesn’t have a base, prices won’t stay high all the time so it can crash, and it crashed, in the end… small investors are the ones who lose money, so it’s a big risk for small investors.

Das said in July that cryptocurrencies are a clear danger. In May, he warned on cryptocurrencies amid a market selloff. “We warned about cryptocurrencies and look what happened now in the crypto market,” the governor said after the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST).

The RBI has recommended the Indian government to ban cryptocurrencies, including bitcoin and ether. However, India’s Finance Minister Nirmala Sitharaman said both ban and regulation can only be effectively with “significant” international cooperation.

India still does not have a specific regulatory framework for cryptocurrencies. The Indian government is working on a crypto account for several years but it has yet to be considered in parliament. Recently, the finance minister asked crypto investors be careful as authorities explore a number of crypto exchanges in money laundering investigations.

What do you think about RBI Governor Das’s comments? Let us know in the comments section below.

India’s Central Bank Governor Warns Crypto Market Could Fall and Retail Investors Will Lose Money – Markets and Prices Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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