Ban Cryptocurrencies In India, Says RBI Governor; What Are The Threats?

Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das reiterated on Friday that cryptocurrencies should be banned in India.

Das felt the growth of cryptocurrencies could result in the RBI losing control over the Indian economy.

The RBI Governor said during a press conference that legalising cryptocurrency in India may lead to ‘dollarisation’ of the Indian economy.

As for the digital rupee, which is the RBI-controlled digital currency launched on pilot basis in December, Das said the IT systems of banks must be robust and focus on data privacy.

That will help create a lucrative environment for the digital currency in the country, said the RBI Governor.

He made the point that RBI has not lost sight of the need to focus on inflation.

“Core inflation still remaining sticky over 6% is definitely a concern… That is not a comfortable number to deal with,” Das said.

The current inflation target of 4% doesn’t need to be revisited, Das felt.

“If the current geopolitical conflict continues the way it is, rates will be higher for longer the world over,” he warned.

Das was optimistic about signs of wholesale credit going up.

“I think going forward, we should see more wholesale demand going up,” he hoped.