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The RBI Governor of India: Crypto isn’t going to work in emerging economic countries

RBI will Begin a Retail Digital Rupee Pilot on December 1

A recent report stated that more than 115 million cryptocurrency investors are from India. But, the governor of the RBI (Reserve Bank of India) believes that crypto cannot be fruitful for any economic country, including India.

In a recent interview, the governor of RBI was asked about his views on cryptocurrency. Shaktikanta Das stated that developing economies operate very differently from developed nations. Therefore, the ongoing atmosphere promoting digital assets and the blockchain industry doesn’t apply to India or countries with developing economic stature.

Dollarization isn’t the best thing happening to our economy

Das said that the application of dollarization isn’t the best thing for our country, especially considering the nation’s economic conditions. Since almost every crypto transaction is denominated in dollars, they will not be favourable for nations like India. On the other hand, crypto could prove to be a great opportunity for countries with advanced economic stature.

A recent report, collected from reliable sources, has highlighted the importance of the statement made by the RBI governor. Already, more than 115 million investors from India have become part of the crypto community; more and more people are planning on expanding their future holdings horizons.

In May 2022, the Central Bank of India released a warning against cryptocurrency holdings to the country’s parliament. Stablecoins could very likely unstabilize the economy of India by causing unintentional dollarization.

Although the Central Bank is in favor of investing in the latest fintech opportunities, RBI will have the power to assess all the inclusive risks prevailing in the industry.

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