Next Financial Crisis Will Be From Crypto if It’s Not Banned: Indian Central Bank Governor

India’s central bank Governor Shaktikanta Das has predicted that the next financial crisis will come from “private cryptocurrencies” if they are allowed to be regulated and not banned outright. Das was speaking at the Business Standard BFSI Insight Summit on Wednesday.

“Our view is that it should be prohibited because if you try to regulate it and allow it to grow, please mark my words the next financial crisis will come from private cryptocurrencies,” Das said. “They have no underlying value. They have huge inherent risks for our macro economic and financial stability. I am yet to hear any credible argument about what public good or what public purpose it serves.”

The term “private cryptocurrencies” is being used to make the distinction between a public cryptocurrency like India’s CBDC and cryptocurrencies such as bitcoin and ether, which are issued by private players, people familiar with the central bank’s functioning told CoinDesk.

Source: Next Financial Crisis Will Be From Crypto if It’s Not Banned: Indian Central Bank Governor