Bank of India Governor Shaktikanta Das said at a private summit on Wednesday that Crypto could lead to the next financial Armageddon. Crypto's famous Bank of India reiterated its position once again.
Bank of India Governor Shaktikanta Das said at a private summit on Wednesday that Crypto could lead to the next financial Armageddon. Crypto's famous Bank of India reiterated its position once again. "I still think it should be banned," said the governor of the Reserve Bank of India
Das pointed out that different countries treat this asset category differently, but the Bank of India insisted on banning this asset category. "Because it is allowed to grow... Remember my words, the next financial crisis will come from private Crypto." Das added that Crypto, including the FTX collapse, supported this view last year.
At the same time, the governor of the Bank of India denied the war against this asset class and reiterated that Crypto has no potential value. He believes that private Crypto originated from "bypassing and breaking the system". Officials say the claims come from the inherent risks of the assets. He said that the financial and macroeconomic stability of Crypto and the stability of the economy forced top banks to maintain this position.
The Bank of India reiterated its strong position on Crypto and chose to issue CBDC to develop the domestic economy. The governor of the Bank of India also said that private Crypto is a speculative asset class. "I think the term private Crypto is a fashionable way to describe 100% speculation." The digital rupee supported by Das Central Government has nothing to do with undermining the private sector. "This is not a private Crypto. I think this is how it will evolve."
On December 1, four banks in four cities started the pilot of digital rupee retail in India. Considering that India has a unified payment interface (UPI), the governor of the Bank of India questioned the effectiveness of this launch in the form of an effective point-to-point fast transfer system. Das explained that UPI is based on the payment system of the central bank, and CBDC itself is a currency.
The governor of the Bank of India said: "CBDC is like paper money. Go to the bank, take out the money, put it in your wallet, and spend it."
The President claimed that the production of physical banknotes would soon become obsolete, and the CBDC digital rupee, as the future currency, would have the advantages of easier access and faster logistics. "The next issue is international transactions. Both countries have their own time when CBDC can achieve immediate results," Das said during the discussion on the benefits of remittances from CBDC.
Interestingly, although these institutions are private Crypto with a negative attitude, the asset class is still the government's source of income.
According to the statement submitted to Parliament by the Ministry of Finance last week, it is reported that the Indian government has deducted about 7.3 million US dollars (TDS) from Crypto's asset transactions. It is worth noting that the Obama administration has launched the tax system in its current fiscal policy. Recently, Pankaj Chaudhary, State Minister of the Ministry of Finance, also disclosed that several law enforcement agencies (ED) involved in investigating Crypto fraud cases.
According to local media reports, his reply showed that as of December last year, such assets had been seized or confiscated for about US $109.6 million. In addition, officials said that three people were arrested in the above-mentioned cases. However, the country is still waiting for the form of Crypto Act to be clarified. But India's Ministry of Finance made it clear in this week's parliamentary statement that this would be subject to international cooperation.
The report pointed out that "in its basic form, the Central Bank Digital Currency (CBDC) physical cash substitutes are safe, reliable and convenient. According to different designs, CBDC can also be a complex form of financial instruments." The efficient cross-border payment supporting the Reserve Bank of India CBDC is considered as a substitute for the future agent bank.