Reserve Bank of India (RBI) Governor Shaktikanta Das said that cryptocurrencies are a clear danger to the financial systems, adding that we must be mindful of the emerging risks on the horizon.
In the RBI’s annual ‘Financial Stability Report’ (FSR) 2022, he wrote in the foreword that anything that derives value based on make believe, without any underlying, is just speculation under a sophisticated name.
“While technology has supported the reach of the financial sector and its benefits must be fully harnessed, its potential to disrupt financial stability has to be guarded against,” Das stressed.
The RBI governor has been a vocal critic of the cryptocurrencies.
He recently cautioned the crypto investors, saying that “it is my duty to tell the investors who invest in cryptocurrencies to keep in mind that they are investing at their own risk and also need to keep in mind that the cryptocurrency has no underlying value, not even a tulip”.