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.
Aug 23, 2022 at 10:40 a.m. UTC:format(webp)/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)
Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.
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 a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/www.coindesk.com/resizer/2T8HrOlILUCuZc0Nt5fqKxPPy6E=/arc-photo-coindesk/arc2-prod/public/LW4HUR2U7BC5RFC4XSV6HGCP4E.png)
Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.
Learn more about Consensus 2023, 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.
Amitoj Singh is CoinDesk's regulatory reporter covering India. He holds BTC and ETH below CoinDesk's disclosure threshold of $1,000.
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/W5HUTH6SPNAHNMQOZEDMJIN5YA.png)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/URN5K635UZEU7GPFSAGVLZS7LQ.jpg)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/RDWIOA53QBCGPPLPO5LKBIC3PI.png)
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/TXD3QDWAP5HZHF3GNQIXH6VTRI.jpg)