Cryptocurrency News | New Delhi: The Governor of the Reserve Bank of India (RBI) Shaktikanta Das, on Thursday, called cryptocurrencies a ‘clear danger’. He further said that anything that derives value from make-believe is speculation. According to reports, the government is working on a consultation paper on cryptocurrency. From July 1, the crypto investors will also have to pay 1 per cent TDS on crypto transactions.Also Read – Why RBI Governor Calls Cryptocurrencies ‘Clear Danger’? Read HERE
Das wrote in the 25th issue of the Financial Stability Report (FSR) said, “We must be mindful of the emerging risks on the horizon. Cryptocurrencies are a clear danger. Anything that derives value based on make believe, without any underlying, is just speculation under a sophisticated name.” Also Read – 100 Per Cent Privatisation Of Public Sector Banks Soon? Know Here
‘Cryptocurrencies risky, but for whom and to what extent?’
Speaking to india.com, Kumar Gaurav, Founder & CEO of Cashaa said, “I somewhat agree with the statement put forth by RBI Governor Shaktikanta that cryptocurrencies could be risky. But the question is for whom and to what extent vs. Furthermore, what is the benefit we derive from it? Is the need more than the risk or not?” Also Read – RBI Extends Credit, Debit Card Tokenisation Deadline Till September 30
Gaurav continued, “The statement reminds me of the automobile industry; today, millions of people die every year in road accidents, which makes automobiles a clear danger. However, we are still allowing these killing machines around us.”
He said that it would be wrong to say that Bitcoin holds no value. “Bitcoin is an innovation that creates a monetary system that no one person or entity controls. Money is the oldest human language used to communicate and transfer value. Today we are doing trillions of dollars of transactions based on trust, which is being broken repeatedly by intermediaries and banks. Bitcoin is giving a way to bring back that confidence. Therefore, saying that it holds no value, would be technically wrong. Having said that, not all cryptocurrencies are valuable, as many coins have grown out of pure speculation, but that’s the side effect we have, which can be resolved by education and awareness,” he added.
He concluded, “Also, Not all crypto is valuable and should exist; yes, many coins have grown out of pure speculation, but that’s the side effect we have, which can be resolved by education and awareness.”