InvestorQ : Why has RBI governor criticized the crypto assets?
Mahima Roy made post

Why has RBI governor criticized the crypto assets?

1 month ago

RBI has underlined in no uncertain terms that Cryptocurrencies were dangerous. RBI went to the extent of saying that cryptos were make-believe, without underlying strength or fundamentals and hence speculative. Cryptos, according to the RBI governor, can pose a major systemic risk to the stability of financial markets. Das made these points in his foreword to the RBI Financial Stability Report (FSR) dated 30th June 2022.

Das warned that cryptocurrencies could “dollarize” the economy and such crypto assets could undermine the sovereign control over money supply. Also, in the absence of audit trail, cryptos can be easily used for slush money transfers. RBI highlighted that apart from the liquidity mismatch risk, there were also credit, regulatory and operational risks. RBI has also warned of too much exposure to such volatile asset classes for retail investors.