Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
US banking crisis clearly shows risks that crypto poses to the financial system – Regulation of Bitcoin News
The governor of India’s central bank, the Reserve Bank of India (RBI), says the “ongoing US banking crisis” clearly shows the risk cryptocurrencies pose to the financial system. The central bank governor added that “the Indian economy remains resilient,” stressing that “the worst of inflation is behind us.”
India’s central bank governor on crypto risk and US banking crisis
Reserve Bank of India (RBI) governor warned of the risk cryptocurrencies pose to the financial system while commenting on the US banking crisis at the 17th KP Hormi Memorial Lecture on Friday. RBI Governor Shaktikanta Das said:
Ongoing US banking crisis highlights the importance of robust regulators, sustainable growth and clearly shows the risk of private cryptocurrencies to the financial system.
Das was referring to the recent collapses of several banks in the United States. Last Sunday, Signature Bank was seized by the New York State Department of Financial Services while Silicon Valley Bank was shut down by regulators last Friday. They became the second and third largest banks in the United States to fail. In addition, Silvergate Bank announced voluntary liquidation earlier this month.
Some people believe that regulatory actions against crypto-friendly banks are related to cryptocurrency, including Senator Elizabeth Warren (D-MA) who attributed the failure of Signature Bank to its acceptance of crypto clients without adequate safeguards. However, regulators have insisted that their actions have nothing to do with crypto.
The Indian central bank governor emphasized that the US banking crisis shows “the need for sound asset liability management.” Furthermore, Das said:
Indian economy remains robust. The worst of inflation is behind us.
Das, who was named Governor of the Year by the Central Banking Awards 2023 on Wednesday, has repeatedly warned about crypto risks. According to the Indian central bank governor, cryptocurrency not only poses a significant threat to India’s macroeconomic and financial stability, but also undermines the RBI’s capacity to determine monetary policy and regulate the country’s monetary system.
What do you think about the statements made by RBI Governor Shaktikanta Das? Let us know in the comments section below.
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