Cryptocurrencies and Central Banks are alike as cheese and chalk and the twain never meets. RBI Governor Shaktikanta Das has in Thursday made a new comment in the background of Terra Collapse and the general mayhem across the crypto sector. Last month the RBI Governor passed some really caustic comments against cryptocurrencies.
Crypto Is A Lurking Danger
Investors have been warned repeatedly, Das said when several investors lost hefty sums due to crypto crash. On Thursday, RBI governor once again highlighted the dangers of cryptocurrency and forbade investors from entering the crypto arena due to its volatility and speculative nature.
The RBI Governor termed the crypto assets as a clear danger and investors must be aware of the upcoming dangers on the horizon.
The RBI Governor Said, “We must be mindful of the emerging risks on the horizon. Cryptocurrencies are a clear danger. Anything that derives value based on make believe, without any underlying, is just speculation.”
The Governor also underlined the fact that speculation in crypto is being hid under a façade of sophisticated lingo.
Focus On Cyber Risks Crucial- RBI Governor
The RBI Governor Shaktikanta Das said that technology must be used carefully preempting any possibility of disrupting financial stability. Mr. Das however emphasized that it is technology which is helping spread the reach of the financial sector to every section of the society and its benefits must be fully utilized
Das explained, “While technology has supported reach of financial sector & its benefits must be fully harnessed, its potential to disrupt financial stability has to be guarded against. As financial system gets increasingly digitalized, cyber risks are growing and need special attention.”
Mr. Das used the setting of the Terra crash last month to highlight what he wanted to explain. He said that regulating the crypto sector is a very difficult task. He also said that crypto assets are a threat to macroeconomic and financial security.
Das Concluded “Investors should keep in mind that they are investing at their own risk. The cryptocurrency has no underlying, not even a tulip, he added.”