The Governor of The Reserve Bank Of India (RBI), Shaktikanta Das, has been warning investors and the Government against cryptocurrencies since last year, saying they (RBI) continue to maintain their position more so amid the current crypto market crashes like this one.
Das said it was good that they had been very vocal about their disapproval of cryptocurrency. He further mentioned that had it been that they had regulated it, the current market crash would have been turned on them as people would ask them what happened to their regulations?
Das continued that crypto has no value; hence it is challenging to regulate. He maintained that RBI's stance remains unchanged and clear.
"It will seriously undermine the monetary, financial, and macroeconomic stability of India," he added.
He also said that the Government seems to be on board with this sentiment, and he doesn't know why they wouldn't be since it's not like cryptocurrencies have any underlying value anyway!
Das told reported RBI has submitted its opinions to the Government, and it's awaiting their response. But he mentioned that all indications are pointing toward the Government agreeing with their stance on crypto.
The Deputy Governor has taken a harsh stance on cryptocurrencies, saying they are worse than Ponzi schemes, and there's no alternative but to ban them.
Brian Armstrong, the CEO of US crypto exchange Coinbase, said that they had to disable their UPI service just days after launching it in India due to 'some informal pressure from RBI.'
When asked to comment on Armstrong's statement, the Governor said he does not want to react to speculation made by individuals outside of his office.
A Moneycontrol article has reported that the RBI hasn't imposed any shadowban on crypto exchanges and issued no instructions against their 2020 Supreme Court order.