Dire Warning on Cryptocurrency for Indian Governor at World Economic Forum
Cryptocurrency is in the crosshairs of a respected Indian financial expert at Davos during the World Economic Forum.
Crypto Has “No Value”
The World Economic Forum at Davos is always a source of vital financial news and forecasts, but it can also be a platform for financial and economic experts to weigh in on the trends they find distressing and dangerous. One of the most alarming speeches from this year’s forum came from the governor of the Reserve Bank of India (RBI), Shaktikanta Das.
When speaking on cryptocurrency, he said that these were financial “instruments with no underlying value.” It was a bold statement during a conference where cryptocurrency seemed to be in favor. The statement was made only days after the US Securities and Exchange Commission gave its seal of approval for exchange traded bitcoin instruments.
Das went on to say that crypto has little future in India. When asked directly about the prospects of the digital currency in the country, he responded simply with “Very bad.” His sentiments are an accurate reflection of how the wider Indian government sees cryptocurrency. That should be concerning for crypto investors, as India’s economy is the fourth largest in the world. If their financial leaders are skeptical about crypto’s future, that can negatively impact the market, especially when these sentiments are shared at such a prestigious event as the Economic Forum.
No Faith in Crypto from Indian Government
At the moment, crypto prices are on the rise, but that has not held the Indian government back from banning nine different crypto exchanges in the country. Major exchanges received no special treatment, and the government has blocked URLs from Binance, Bitstamp, Bittrex, Kucoin, Kraken, Huboi, and others. This ban was enacted in late December of 2023 and is in response to violations of the country’s anti-money laundering laws.
India’s Ministry of Electronics and Information Technology was responsible for putting the bans in place. The Indian government issued a statement saying that these exchanges operated in India without receiving the necessary permits and approvals. They said that it was necessary to stop their usage within the country because the platforms were being used for illegal activities. The ministry has issued a warning that these exchanges need to explain themselves to the government as to why they have been operating without legal action before they can be allowed to continue.
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