According to a report, the Reserve Bank of India (RBI) shared the latest comments on Bitcoin and altcoins. The RBI revealed that the cryptocurrency market is highly volatile. He also noted that it exhibits high correlations with the current stock market. The similarities are so numerous, according to the bank, that it contradicts the industry’s narrative and claims that crypto assets are an alternative value asset because of their anti-inflationary benefits. Here are the details…
Statement from RBI on Bitcoin and altcoins
India announced on Thursday that it will do so during the current presidency of the G20. He announced that he will prioritize the development of a framework for global regulation of non-reserved cryptoassets, stablecoins and decentralized finance (DeFi). Additionally, India said it would explore the “possibility of banning”. This risks being a significant setback for the burgeoning industry. The following statements were included in the Financial Stability Report released by the RBI on Thursday:
To address potential financial stability risks and protect investors, it is important to come to a common approach to crypto assets.
The RBI has issued a warning reflecting the sentiments of other central banks around the world. He pointed out that if cryptocurrencies are increasingly integrated into the mainstream financial system, it will have a greater impact on the real economy. Thus, he said, he could “divert finance from traditional finance.”
Will India ban cryptocurrencies?
In the context of developing a regulatory framework for cryptocurrencies, the report states that several options are being considered internationally. One such way was to subject them to the same regulation that applies to traditional financial intermediaries and exchanges. However, they are also open to banning the crypto market completely. The information gathered from the report was as follows:
Another option is to ban crypto-assets because their real-life use cases are almost non-existent, and the challenge is that different countries have individual rights over different legal systems and government powers.
cryptocoin.com As we have reported, one of the most outspoken critics of crypto is the central bank of India. Last week, RBI Governor Shaktikanta Das issued a warning stating that unless private cryptocurrencies are banned, the next financial crisis will result from their use. According to Das, the origins of cryptocurrencies are based on the idea that they are upsetting or undermining the existing financial system. “They don’t believe in a central bank or a controlled financial system,” Das said. He also added that he believes the crypto market should not be allowed. “I have yet to hear a good discussion about what public purpose cryptos serve,” he said.