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Investing.com – Cryptocurrencies are having a hard time in India, where the country’s central bank is seeking to ban digital currencies altogether. Reserve Bank of India Governor Shaktikanta Das once again took a stand against & Co at the Business Today Banking and Economy Summit on Friday.
According to him, crypto investments are nothing but “gambling”.
Between supporters and opponents of cryptocurrencies, the value of digital assets is also often used as an argument. While proponents claim value is based on the underlying technology and user trust, opponents place no value on cryptocurrencies.
Shaktikanta Das follows suit, claiming that “the value of cryptocurrencies is based on an illusion”. Proponents of cryptocurrencies, however, point out that the dollar is just a piece of printed cotton. The time when it had real value because it was backed by is long gone.
The governor warned that the legalization of cryptocurrencies will inevitably lead to an increase in the influence of the dollar within the Indian economy. There is also the risk that the RBI will lose control of the money supply. A risk which, from his point of view, is far from being fictitious, since already “20 percent of transactions are carried out via cryptocurrencies”.
Marco Oehrl