RBI Guv rules out crypto regulation

Mumbai: RBI Governor Shaktikanta Das on Thursday said the central bank does not emulate others when it comes to regulations and asserted that the bank’s as well as his own opposition to cryptocurrencies remain unchanged, a day after US regulators allowed Bitcoin Exchange Traded Funds (ETFs). He also said that emerging markets and the world can’t afford to have a ‘crypto mania.’

“What is good for another market need not be good for us. Therefore, our views - both that of the Reserve Bank and personally that of mine - remain the same,” Das said.

Addressing a financial sector seminar organised by a business daily here, the Reserve Bank of India (RBI) chief also said that for emerging market economies and advanced economies, travelling down that path of cryptocurrencies will create huge risks which will be very difficult to contain going forward.

“The question is why do you want to go down that road? What is it that you are going to get?” Das said, while responding to a query about the development in the US with respect to cryptocurrencies.

Personally Das and RBI, as an institution, are opposed to private cryptocurrencies on the grounds that they pose tremendous threat to the financial stability.

“The US capital markets regulator in the same announcement also issued necessary cautionary advice and necessary warning to investors to be careful along with the risks it poses. Our position, my position and the RBI’s position on this remain unchanged irrespective of who does what. Just because someone has done something, we are not here to emulate them,” he said.

The remarks were in the context of the US regulator SEC permitting Bitcoin ETFs.