Private cryptocurrencies pose threat to macroeconomic, financial stability: RBI Governor

RBI Governor Shaktikanta Das' comment comes a week after the Budget proposed a 30 per cent tax on virtual digital assets, thereby recognising cryptos.
Image used for representational purpose only.
Image used for representational purpose only.

BENGALURU: The Reserve Bank of India has once again on Thursday flagged concerns on risks posed by cryptocurrencies in India. RBI Governor Shaktikanta Das has said that such assets have no underlying value and private cryptocurrencies are a threat to our macroeconomic stability and financial stability.

His comment comes a week after the Budget proposed a 30% tax on virtual digital assets, thereby recognising cryptos. His concerns also come at a time when cryptocurrencies are gaining huge popularity. Also, many crypto platforms have been raising pre-seed funding from venture capitalists.

Reacting to the RBI Governor’s views, Sathvik Vishwanath Co-Founder and CEO Unocoin, says: “We, as part of the crypto industry, do understand that it has the potential to disrupt economies to some extent if it is not handled properly. On the other side, the exchanges which are the anchor points for people to buy and sell cryptos help monitor the transactions and traceability procedures.”

Instead of just blindly investing in cryptos, Vikram Subburaj, CEO, Giottus Crypto Exchange, says there are definitely risks to the downside in the short-term and hence investors are advised to keep their crypto investments to about 2-3% of their overall wealth portfolio.

The crypto platform, Giottus, has launched two investment options to help investors expand their crypto portfolio with investment options starting from Rs 100. Meanwhile, the global crypto market is optimistic as the Russian government plans to recognise crypto as a form of currency. “...the unexpected move can be viewed as a positive for the industry, demonstrating that regulators and policy makers are also starting to realise the potential crypto has,” says CoinDCX.

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