FTX Fiasco: Crypto Will Spark Financial Crisis Unless Banned: RBI Boss

  • According to Shaktikanta das, Governor of Reserve Bank of India Shaktikanta Das said that FTX’s bankruptcy filing showed that crypto is a threat for the global financial system.
  • Das called for a complete ban on the “100% speculative asset class.”
  • He said, “Mark your words, the next financial crises will come from private cryptocurrency,” he continued.

One of the world’s most prominent central bankers has warned that it’s time to ban cryptocurrency, before they trigger the next financial crises.

Reserve Bank of India governor Shaktikanta Das said Wednesday that digital assets lack any underlying value – and so they should be banned outright rather than regulated by governments.

He said that “cryptocurrency” was a trendy term to describe what is otherwise 100% speculative. Business Standard’s BFSI Insight Summit.

“We believe it should not be allowed to grow because if you try and regulate it, please mark mine words that the next financial crises will come from private crypto currencies,” Das stated. They have no underlying value. They pose huge risks to our financial and macroeconomic stability.

The RBI has repeatedly called on cryptocurrency to be banned and not regulated by governments.

Das stated that this year’s ‘crypto winter’ was fueled by rising interest rates, and the spectacular implosions of several high-profile businesses, including major exchange FTX, reinforced his belief that cryptocurrencies should be banned.

He stated that different countries have taken different views. “I don’t think that we need to say more about our position after the developments over one year, including the most recent episode around FTX.”

FTX filed for bankruptcyLast month, a sell-off of its native FTT token triggered an emergency situation.

Authorities arrested Sam Bankman-Fried, the founder of the company, in the Bahamas last week. He is currently being extradited to the USA on fraud and money laundering charges.

Das’s comments come as India assumes its presidency of the G20 – a group of countries including China, Russia, and the US.

India’s chief finance Minister Nirmala Sitharaman promised to make digital asset regulations a major topic of discussion in the country’s G20 presidency. It will be held between now and November 30, 20,23.

Continue reading: This 26-year-old FTX customer lost access to $14,000 when Sam Bankman-Fried’s exchange collapsed. Now he plans to keep his money in stocks.

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