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Policy

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.

By Amitoj Singh
AccessTimeIconAug 23, 2022 at 10:40 a.m. UTC
Updated May 11, 2023 at 3:38 p.m. UTC
RBI Governor Shaktikanta Das said the central bank's warnings pushed people to avoid crypto. (Laurentiu Morariu/Unsplash)

RBI Governor Shaktikanta Das said the central bank's warnings pushed people to avoid crypto. (Laurentiu Morariu/Unsplash)

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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.

Read More: India's Crypto Industry Advocacy Body Disbanded


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Amitoj Singh
Amitoj Singh

Amitoj Singh is a CoinDesk reporter.

Follow @amitoj on Twitter

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