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The leadership of the Reserve Bank of India (RBI) assures that the country’s authorities share the concern of the regulator regarding the threat posed by the crypto industry.
RBI Governor Shaktikanta Das said that the central bank warns investors against investing in digital currencies due to recent events in the market. This refers to the collapse of the stablecoin TerraUSD (UST) and the cryptocurrency Terra (LUNA), said in an interview for CNBC the head of RBI. According to Shakticant Das, the bank is currently monitoring the situation in the market to understand the main reasons for the collapse and formulate clear rules for Indian investors:
“If what happened was in our area of responsibility, then people would already have questions about our competence. Therefore, we urge investors to temporarily refrain from purchasing digital currencies until we understand what is happening in the cryptocurrency markets now.”
The value of cryptocurrencies is practically not supported by anything, assures the head of RBI. Cryptocurrencies could undermine India’s monetary, financial and macroeconomic stability, and their further spread, Das says, could lead to the dollarization of the Indian economy.
The official is convinced that the Indian authorities share the regulator’s position on cryptocurrencies, since the RBI has clearly expressed its opinion on the crypto industry. The Indian government is concerned about the situation, Das says, and is actively working on legislation on digital currencies.
Earlier, the CEO of the cryptocurrency exchange CoinSwitch Ashish Singhal (Ashish Singhal) said that the uncertainty with the rules of regulation of cryptocurrencies in India greatly slows down the development of the industry in the country.
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