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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2022\/12\/20\/india-central-bank-chief-warns-crypto-will-cause-the-next-financial-crisis-if-permitted-to-grow\/<\/a><\/br> The Indian central bank\u2019s governor said on Wednesday that it\u2019s not at war with crypto, but warned that private cryptocurrencies will cause the next financial crisis unless its usage is prohibited.<\/p>\n RBI Governor Shaktikanta Das told a room packed with banking executives and lawmakers that crypto has a huge inherent risk to the macroeconomic stability of the nation. \u201cAfter the development of the last one year, including the latest episode surrounding FTX, I don\u2019t think we need to say anything more. Time has proven that crypto is worth what it\u2019s worth today.\u201d<\/p>\n \u201cChange in value in any so-called product is the function of the market. But unlike any other asset or product, our main concern with crypto is that it doesn\u2019t have any underlying whatsoever. I think crypto or private cryptocurrency is a fashionable way of describing what is otherwise a 100% speculative activity,\u201d said Das.<\/p>\n Das said crypto owes its origin to the idea that it bypasses or breaks the existing financial system. \u201cThey don\u2019t believe in the central bank, they don\u2019t believe in a regulated financial world. I\u2019m yet to hear a good argument about what public purpose it serves,\u201d he said, adding that he holds the view that crypto should be prohibited.<\/p>\n \u201cIt should be prohibited because if it is allowed to grow \u2026 say it\u2019s regulated and allowed to grow \u2026 please mark my words that the next financial crisis will come from private cryptocurrencies,\u201d he said.<\/p>\n India is among the nations that has taken a stringent approach at handling cryptocurrencies. Earlier this year, it began taxing virtual currencies, levying a 30% tax on the gains<\/a> and a 1% deduction on each crypto transaction.<\/p>\n The nation\u2019s move, alongside the market downturn, has severely depleted the transactions that local exchanges CoinSwitch Kuber, backed by Sequoia India and Andreessen Horowitz, and CoinDCX, backed by Pantera, process in the nation.<\/p>\n Changpeng \u201cCZ\u201d Zhao, founder and chief executive of the world\u2019s largest crypto exchange Binance, told TechCrunch in a recent interview that the firm doesn\u2019t see India as a \u201cvery crypto-friendly environment.\u201d<\/a> He said the firm is attempting to relay its concerns to the local authority about the local taxation, but asserted that tax policies typically take a long time to change.<\/p>\n \u201cBinance goes to countries where regulations are pro-crypto and pro-business. We don\u2019t go to countries where we won\u2019t have a sustainable business \u2014 or any business, regardless of whether or not we go,\u201d he said.<\/p>\n Coinbase, which has backed both CoinDCX and CoinSwitch Kuber, launched its crypto platform in the country earlier this year but\u00a0quickly rolled back the service<\/a> amid a regulatory scare. Coinbase co-founder and chief executive Brian Armstrong said in May that the firm disabled Coinbase\u2019s support for local payments infra UPI \u201cbecause of some\u00a0informal pressure from the [central bank] Reserve Bank of India<\/a>.\u201d<\/p>\n \u201cCrypto closed 2021 with the narrative that finance as we know it was slow, inefficient and clumsy. Defi and DAOs were the path forward. Crypto prices, in their own jargon, were mooning and investors were HODLing. Since May 2022, cryptos have lost some of the shine \u2014 two-thirds of the value. Failure of some entities have caused the ecosystem to unravel,\u201d T. Rabi Sankar, deputy governor of RBI, who once likened crypto to tulips and Ponzi schemes<\/a>, said Wednesday.<\/p>\n \u201cThe technology that was heralded as the end of government, and regulators and intermediaries \u2014 the underlying philosophy of crypto \u2014 is now frantically seeking to be regulated,\u201d he said.<\/p>\n<\/p><\/div>\n <\/br><\/br><\/br><\/p>\n
\nIndia central bank chief warns crypto will cause the next financial crisis if permitted to grow<\/br>
\n2023-01-20 21:51:04<\/br><\/p>\n