The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, announced on Friday that cryptocurrencies will be banned entirely from the nation and can be considered for gambling only.
Explaining further the reason behind the crypto ban, Das stated that besides the danger of terror funding, the definition of cryptocurrency is very uncertain. According to him, some people call cryptocurrency an asset, while others call it a financial product, and in that case, it has to have some underline.
Das also represented the volatility in prices of cryptocurrency that makes it reliable. The volatility in price is based on the pretended concept that a particular cryptocurrency price can go up or down. Therefore, anything that comes without any underline whose valuation is entirely dependent on the pretended concept is just 100% speculation or gambling.
India does not allow gambling, and if cryptocurrency is to be treated as gambling, then there should be some particular rules to that. Crypto is not a financial product, so crypto masquerading as a financial asset or product is a misplaced argument.
Issues of data privacy and the robustness of banks’ tech infrastructure have to be the banks’ focus. As many banks are actively engaged with many big tech companies, their challenge is to ensure that this should not lead to a situation where the big tech firm swallows up banks. According to Das, banks should make their own decisions and should not be dominated by the big techs.