RBI Governor Shaktikanta Das Issues Crypto Alert After Terra’s Luna, UST Collapse

Reserve Bank of India Governor Shaktikanta Das has said in an interview that the country’s central bank is cautioning against cryptocurrencies, following the collapse of Terra’s UST and LUNA. On May 15, RBI officials warned that with most cryptocurrencies denominated by the US dollar, this could lead to dollarization of the country’s economy. Officials stressed that dollarization is against the sovereign interests of the country, while digital assets are a threat to India’s financial stability.

Das told CNBC TV18 in an interview On Monday that if crypto had been regulated in India, due to the recent disaster swirling around the Terra ecosystem, investors would have questioned the effectiveness of the law. While the Indian government has often stated that it will not shut down crypto completely, the central bank has called for a ban on several occasions.

“it [crypto] something that is inherent [value] There is nothing There are big questions on how you regulate it. Our position is very clear, this will seriously undermine India’s monetary, financial and macroeconomic stability,” the governor said.

RBI governor said the country’s central bank and government are “coordinating” their stand crypto regulation because the government is “equally concerned.”

“We have conveyed our position to the government and they will look into it,” he said.

Additionally, Das was asked a question regarding the claim made by Coinbase CEO Brian Armstrong. Armstrong claimed that Coinbase India had disabled payments via Unified Payments Interface (UPI) just days after its launch. “informal pressure” from RBI.

The Governor replied that he did not want to comment on the fictitious remarks made by outsiders.

As things stand, the Indian crypto sector is completely unregulated. Indian Finance Ministry is organizing meetings with various financial institutions like International Monetary Fund, world BankThe reserve Bank of Indiasimultaneously Securities and Exchange Board of India (SEBI),

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