RBI Governor Says Central Bank's Warnings Pushed People to Avoid Crypto: Report
The central bank has maintained banning cryptocurrency is the most suitable choice for India.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/D7IWQD7KGJCHLECVSGFXEPDVN4.jpg)
RBI Governor Shaktikanta Das said the central bank's warnings pushed people to avoid crypto. (Laurentiu Morariu/Unsplash)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
Reserve Bank of India (RBI) Governor Shaktikanta Das, in an interview with ET Now, said the warning bells sounded by the Indian central bank persuaded people to avoid cryptocurrencies.
- "I’m happy we sounded those warning signals," said Das. "Anecdotally I am aware that many people did not invest in crypto or they sort of pulled out of crypto thanks to the caution and the concern that emanated out of the Reserve Bank."
- Das also reiterated his view that cryptocurrencies can create problems with a central bank's ability to manage monetary policy.
- The Indian central bank has time and again voiced concerns about crypto. In February, RBI Deputy Governor T. Rabi Sankar said that an outright ban on cryptocurrencies is perhaps the most apt choice for India.
- In 2018, RBI had effectively banned Indian banks from supporting or engaging in crypto transactions. However, the Indian Supreme Court overturned the order in 2020.
- The central bank is also said to be responsible for a "shadow ban" in which payment processors were cut off from local crypto exchanges. "I would not like to comment on speculative observations made by individuals outside," Das had later said in an interview with CNBC TV 18.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.