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India's Central Bank Head Claims Crypto Has No Underlying Value

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Mon, 05/23/2022 - 16:12
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Alex Dovbnya
Governor of India's central bank feels vindicated following massive crypto crash
India's Central Bank Head Claims Crypto Has No Underlying Value
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Shaktikanta Das, the governor of the Reserve Bank of India, has reiterated that cryptocurrencies have no underlying value, according to a report by a local media outlet.

He is convinced that crypto could "seriously undermine" the country's financial system.

The central bank head pointed to the recent cryptocurrency correction to justify his cautious attitude toward cryptocurrencies.

Das has stressed that the central bank seems to be on the same page with the government when it comes to cryptocurrencies.

Central banks around the globe remain hawkish toward cryptocurrencies. Last week, Sweden's Riksbank concluded that Bitcoin was not money, while European Central Bank President Christine Lagarde opined that crypto was worthless.

No regulatory certainty

Last month, Indian Finance Minister Nirmala Sitharaman said that finalizing the country's cryptocurrency regulation will take more time. She recognized the promising potential of blockchain, the technology that underpins cryptocurrencies. Sitharaman also mentioned that cryptocurrencies could be used for nefarious purposes, such as money laundering.

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India's approach to regulating cryptocurrencies recently attracted praise from IMF Managing Director Kristalina Georgieva.

There is still no consensus regarding how the industry should be regulated in India. In February, central banker T. Rabi Sankar said that imposing a blanket ban on cryptocurrencies would be "the most advisable" choice.

Last week, CoinSwitch CEO Ashish Singhal called for regulatory clarity in India. The former Amazon engineer claims that it would bring "certainty" and "peace."

Earlier this year, the government introduced a tax rate of 30% on cryptocurrency income. The move was extremely unpopular with the country's struggling cryptocurrency industry.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.