The head of India’s central bank, Shaktikanta Das, said private cryptocurrencies could cause the next financial crisis. He said that these cryptocurrencies don’t have any real value and could hurt the financial system and the stability of the economy as a whole. If private cryptocurrencies continue to grow, they will cause the next financial crisis, so I’m telling you to get ready now. Das said why it should be against the law to use private cryptocurrencies. know more about cryptorevolt.APP by clicking here.
We don’t need to say anything else because a lot has happened in the last year, including the most recent episode of FTX.
Das said what he had to say at the Business Standard BFSI Insight Summit. People used to think that all cryptocurrencies were worth more than $180 billion, but now they’re only worth about $140 billion. Prices go up or down because of changes in the market. The thing about this product that worries us the most is that it doesn’t make sense.
Das says that private cryptocurrencies were made to get around rules and “destroy the system.” When people see money coming from a financial industry that the government controls or regulates, they don’t feel safe. Still, more people need to know about these things. Only because someone else told us did we know about it.” Das said that the RBI often changes how it predicts inflation when things don’t go as planned.
“The main thing that affects our money policy is what goes on inside our borders,” he said. “When trying to predict inflation, it’s more important to be right about its direction and rate than about its value.”
At its policy review in December, the Monetary Policy Committee (MPC) raised the repo rate by 35 basis points. This caused interest rates to go up by 225 basis points in 2022. The Consumer Price Index says that inflation was at 5.88% in November. This was the first time since 2022 that the price gauge went below the 2-6% range that the RBI allows. On the other hand, the price index has been higher than the RBI’s 4% inflation target for 38 months in a row.
Das also said that the Indian economy was strong and that many of the RBI’s measures of growth were in the “green zone.”
Private cryptocurrencies are decentralized digital assets that aren’t issued or backed by any government or central bank. Even though they don’t use blockchain, which is what makes cryptocurrencies possible, they still work.
Still, private cryptocurrencies come with some risks, and some of these risks could lead to a financial disaster. For instance, the market for private cryptocurrencies is very unstable because prices can change a lot in a short amount of time. Investors could lose money because of this volatility, leading to a crisis if the losses are significant enough and spread out enough.
When working with private cryptocurrencies, it is essential to be very careful and know the risks that come with them. Do some research and talk to a professional before you decide what to do with your money.
Investors already had less faith because they were worried about inflation and the next recession. The failures of projects like LUNA and exchanges like FTX, Three Arrows, Celcius, and Vauld have caused even more damage. Bitcoin Smart is the top trading bot trusted by millions of traders. Trade BTC and other cryptocurrencies here.
A financial crisis happens when there are problems with the whole financial system. A lot of different things can cause these problems, and most of the time, the people who have them can’t do anything to fix them.