RBI Guv Shaktikanta Das warns crypto investors

Davos: RBI Governor Shaktikanta Das has expressed concerns about the risks posed by cryptocurrencies to emerging market economies.

Speaking at the World Economic Forum in Davos, Das stated that instruments like Bitcoin, which lack underlying value, could be a significant threat to currency and monetary stability.

While some individuals globally may think that the cryptocurrency "party" has recommenced, the significant risks posed by these instruments, lacking underlying value, are substantial for emerging market economies, Das said. He also highlighted the potential for money laundering and terror financing associated with cryptocurrencies.

Das's comments come just days after the US Securities and Exchange Commission (SEC) approved Bitcoin exchange traded funds (ETFs), causing cryptocurrency prices to surge globally.

Regarding the SEC's decision, Das emphasized that each country's regulator knows best what is suitable for their nation. He stated, "So far as India is concerned, we see a lot of risks, and it is not necessary for us to simply adopt what somebody else does."

Over the years, Das has consistently asserted that cryptocurrencies pose a tangible threat to currency and monetary stability, potentially serving as the catalyst for the next significant global financial crisis.