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RBI Governor Shaktikanta Das has expressed concerns about the risks posed by cryptocurrencies to emerging market economies. He highlighted the lack of underlying value, potential for money laundering, and terror financing. Das emphasized the need for each country's regulator to decide what is suitable for their nation. Das also highlighted the potential for money laundering and terror financing associated with cryptocurrencies. Reserve Bank of India ( 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. According to an ET report, Das 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. Das cautioned against celebrating the recent resurgence of cryptocurrencies, noting that they had previously experienced a collapse. He stressed the importance of recognizing the significant risks involved, particularly for emerging market economies. In response to a question on the future of cryptocurrencies in India , Das gave a short reply — “very bad” — before reiterating his concerns. In addition to discussing cryptocurrencies, Das addressed the issue of food inflation in India. While acknowledging the country's robust GDP growth, he expressed concern about the volatile nature of food prices. Das attributed this volatility to global supply chain issues and unexpected weather events. He pointed out that heavy rains and floods had impacted vegetable prices in the past year. Although the RBI cannot control such factors, Das affirmed that the central bank must respond to them. Read From ET | Das’s views on crypto party Despite the challenges posed by food inflation, Das expressed satisfaction with the trajectory of core inflation, which excludes volatile food and fuel components. About the Author TOI Business Desk The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world. Read More FOLLOW US ON SOCIAL MEDIA Visual Stories Previous 10 Most Affordable Cities in India to Buy a House business Most Visited Monuments in India business The Pros and Cons of Investing in Value Stocks business Investing in Small-Cap Stocks: Top 10 Tips for Absolute Beginners business 10 Ways to Earn Money Online by Selling Physical Products business Richest Cricket Players Across the World business 10 Things You Didn’t Know About Warren Buffett’s Investment Process business Priyanka Chopra Net Worth: Know How Rich is Global Actress business Top 10 Benefits of Investing in Small-Cap Stocks business 15 Best Tax Saving Schemes in India business Next 1 2 3 Hot Picks Amazon Sale Fire Dombivli high-rise Sextortion Rahul Dravid Best laptops in India Makeup Products Discount Best Power Banks Tecno Pop 8 Review Gaming Laptops TOP TRENDS Ayodhya Ram Mandir Tata Punch Electric Horoscope Today Pran Pratishtha Celemony Amazon Republic Day Sale Iran Strikes on Pakistan
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