India's Central Bank Reminds Crypto Not a Stable Asset

Liputan6.com, Jakarta – India's central bank or Reserve Bank of India (RBI), releases its monthly bulletin. This bulletin explains the significant impact and inherent risks of decentralized finance (defi) and cryptocurrencies in the financial system.

“Our findings suggest that interest in cryptocurrencies is driven by speculative motives rather than a means of payment for real economic transactions,” RBI said in the bulletin, quoted from Bitcoin.comTuesday (18/6/2024).

India's central bank added that the crypto ecosystem lacks accountability and stability and is characterized by regulatory ambiguity, retail investors should be more careful.

The bulletin included a statement from RBI Governor Shaktikanta Das, who described the terms cryptocurrencies and private cryptocurrencies as a fashionable way to describe activities that are 100 percent speculative.

India currently does not have a specific regulatory framework for cryptocurrencies. In 2021, a draft law aimed at regulating digital assets was proposed by a government panel, but is still pending.

The Securities and Exchange Board of India (SEBI) recently submitted regulatory proposals for crypto assets to a government advisory committee, suggesting that different regulators should manage certain aspects of cryptocurrency trading.

At the same time, the Reserve Bank of India raised its objections, outlining the macroeconomic risks associated with cryptocurrencies, particularly regarding tax avoidance and fiscal stability.

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