According to the latest report published by the Reserve Bank of India (RBI), cryptocurrencies are a clear danger and lead to instability in the financial system.
The document reads:
“We must be mindful of emerging risks on the horizon. Cryptocurrencies are a clear danger. Anything that extracts value on the basis of fiction, without any basis, is just speculation under an intricate name.”
According to the central bank of the country, decentralized digital assets are “designed to bypass the financial system and all of its controls,” including AML and counter-terrorist financing mechanisms.
However, cryptocurrencies are not considered to be a top risk by the RBI. According to the bank, these are rising commodity prices and geopolitical tensions.