RBI: Crypto is not Good for the Indian Economy

The number of digital investors in India has increased significantly in the current year. There are many crypto exchanges, both local and foreign, that have tried to reach out to the large population of India with the help of online and digital media advertising. A considerable amount of Indian social media personalities have been approached by different crypto exchanges.

These crypto exchanges have targeted the younger generation that engages on the online platforms more frequently and gave them a chance to start crypto trading as a school student as well. Considering the rapid infiltration of these crypto exchanges, several government officials in the region have raised the issue of its impact on the economic development of the region. Shaktikanta Das, the governor for RBI, has recently issued a warning in the same fashion.

Shakitkanta Das has been currently renewed for another 3-year service as the governor of the Reserve Bank of India. Addressing the Business Standard Summit organized by BFSI, he claimed that the increasing number of cryptocurrency traders in the region could wreck the economy of the region. He also commented that the new financial figures show that investors are taking more and more interest in crypto trading.

According to Das, cryptocurrency trading can lead to the devaluation of INR or the Indian rupee. Other politicians have reiterated the same statements. He also thinks that the hype around crypto trading is a major cause of more people buying into the idea of digital asset investment. Das claimed that he is speaking on behalf of the state that the financial stability of the country is threatened by the cryptocurrency market.

Indian Government may Ban Crypto Assets

The parliament of India chartered a new regulatory bill for imposing the ban on cryptocurrency trading and ownership in the region. According to the local media outlet, The Economic Times, the government has refrained from going forward with the bill to protect the interests of a massive number of digital investors in the region.

The bill under question was first submitted in parliament in June 2021. Last week some members of the parliament decided to cast a vote on the crypto regulatory bill. The idea of a complete crypto exodus has been discarded for now. The officials from the government have decided to seek a middle ground for regulating cryptocurrencies that will not hinder the process of fintech innovation. However, there is also no chance of adopting Bitcoin or any other cryptocurrency as a legal tender any time soon.

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