India Unfazed By US Cryptocurrency Approval: RBI Governor
RBI Governor Shaktikanta Das has emphasised that India will not follow the lead of other countries, such as the United States, in embracing cryptocurrencies. This statement comes in the wake of the US regulators allowing bitcoin exchange-traded funds (ETFs), a development seen as a significant step in the integration of cryptocurrencies into mainstream finance.
Das expressed concerns about the potential risks associated with cryptocurrencies, comparing the situation to the historical "Tulip mania" in the Netherlands, which resulted in an asset bubble. He cautioned against succumbing to a "crypto mania" and stated that India and other emerging markets cannot afford to face similar outcomes.
In response to a query about the recent US regulatory approval, Das highlighted that the US Securities and Exchange Commission (SEC) issued cautionary advice and warnings to investors regarding the risks associated with cryptocurrencies. He reiterated the unchanged position of the Reserve Bank of India (RBI) and himself, emphasising that just because another country has taken a certain regulatory stance, it does not mean India should automatically follow suit.
Das refrained from commenting directly on the decisions of regulators in other countries, stating that each country knows what is best for its unique circumstances. He pointed out that even the regulators who approved cryptocurrency products in the US acknowledged the risks and advised caution to investors.
Regarding the potential inflationary impact of the forthcoming vote-on-account, Das expressed confidence based on the past records of the present government, stating that he does not foresee the interim budget leading to inflationary pressures.
