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Policy & Regulation

RBI Governor says crypto doesn’t have any underlying value

23 May 2022 : 15:20
2 min read
  • RBI Governor Shaktikanta Das believes that crypto has no underlying value
  • As per Das crypto will seriously undermine the monetary, financial, and macroeconomic stability
  • Christine Lagarde, the President of the European Central Bank, also said that crypto has no value

India hasn’t been very crypto-friendly, and it seems that the situation is very unlikely to change. The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, on Monday, May 23, said that as per authorities, cryptocurrencies like Bitcoin do not possess any value, and it seems that the central bank remains against these blockchain-based assets. 

RBI believes that people would raise questions

RBI Governor gave an exclusive interview with CNBC TV18 wherein he talked about the current state of the crypto market and how regulations would’ve worsened the situation. 

“We have been cautioning against crypto and look at what has happened to the crypto market now. Had we been regulating it already, then people would have raised questions about what happened to regulations,” Das noted.

On the other hand, the RBI chief also stated that the underlying value of cryptocurrency is “nothing.” “There are big questions on how do you regulate it. Our position remains very clear; it will seriously undermine the monetary, financial, and macroeconomic stability of India,” Das said while giving the interview. Das earlier said that crypto is a threat to India’s sovereign interests.

Additionally, Das cleared the air by stating the fact that the Central Government is with the RBI on the fact that cryptocurrencies have no underlying value while also stating that he won’t comment on the “speculative observations made by individuals outside” when asked about the statement from Coinbase CEO Brian Armstrong who said that the central bank had forced exchanges to drop UPI payments. 

ECB chief has similar views

The President of the European Central Bank Christine Lagarde also issued a similar statement regarding cryptocurrencies. She told the Dutch television show College Tour in an interview aired on Sunday that she has never invested in crypto while her son has. 

“I have said all along the crypto assets are highly speculative, very risky assets,” Lagarde said. “My very humble assessment is that it is worth nothing. It is based on nothing; there are no underlying assets to act as an anchor of safety.”


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