Deputy Governor of the Reserve Bank of India advocates for a crypto ban

According to T Rabi Sankar, digital assets do not represent any financial value

15.02.2022 - 13:50

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What’s new? The Reserve Bank of India (ROI) Deputy Governor T Rabi Sankar has stated that it is “most-advisable” for the country to ban cryptocurrency. He also rejected various cryptocurrency projects developed by his proponents and said that digital assets are not a currency, asset, or commodity, the Financial Express edition reports.

Financial Express’s material

What else did Sankar say? The Deputy Governor of ROI is confident that the adoption of cryptocurrency will be a “retrograde step” for the country. It will undermine the social, economic, and legal fabric of society. The use of private digital currencies can lead to the dollarization of the Indian economy. Sankar stated:

“Dollarization would undermine the ability of authorities to control money supply or interest rates, as monetary policy would not have any impact on the non-Rupee currencies or payment instruments. When that happens, India loses not just its currency, a defining feature of its sovereignty, but its policy control of the economy.”

Earlier, it was reported that India’s Finance Minister is postponing her choice on the future of cryptocurrencies in the country. Nirmala Sitharaman is awaiting the consultation of digital asset experts to make a final decision.

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