National desk
26 October
Sandeep Dhand Ludhiana
Reserve Bank of India (RBI) Governor Shaktikanta Das has issued a strong warning regarding the risks posed by cryptocurrencies to the nation’s financial and monetary stability. Speaking at the Peterson Institute for International Economics, Das cautioned that widespread use of cryptocurrencies could undermine the central bank’s control over the country’s money supply, posing severe challenges to economic stability.
Highlighting the potential threats to the banking system, Das expressed concern that if cryptocurrencies become too integrated into the financial system, it could destabilize traditional monetary frameworks. “I believe this is something that should not be allowed to dominate the financial system,” he asserted, warning of the potential loss of regulatory authority by the central bank.
According to Das, cryptocurrencies not only pose risks for the stability of the banking sector but could also erode the ability of the RBI to manage liquidity and control inflation, essential tools for maintaining economic balance. His remarks reinforce the RBI’s stance on maintaining caution around the regulation and use of cryptocurrencies, advocating for policies that protect financial stability and prevent undue risks in India’s financial system.