Cryptocurrencies are a clear danger and lead to instability in the financial system. Such results are contained in the report of the Reserve Bank of India (RBI).

“We have to be wary of the risks that are on the horizon. Cryptocurrencies are a clear danger. Anything that draws value based on fiction without any basis is just speculation under a complex name,” the document states.

According to the RBI, decentralized digital assets are “designed to bypass the financial system and all of its controls,” including money laundering and counter-terrorism financing mechanisms.

However, cryptocurrencies do not occupy a leading position on the risk list of the Central Bank. Rising commodity prices and geopolitical tensions are outpacing them. The regulator considered these events with “significant consequences” that could threaten the integrity of the global financial system.

The Reserve Bank of India is a consistent competitor of digital assets. In 2018, the Central Bank banned banks and financial institutions from providing services to companies working with cryptocurrencies. In March 2020, the Supreme Court overturned the restriction.

In the spring of 2021, it became known that the regulator was asking banks to terminate their relationship with bitcoin exchanges. After that, the RBI urged regulated institutions not to resort to the repealed directive banning transactions with cryptocurrencies.

In May 2022, the media reported that representatives of the Reserve Bank of India were concerned about the dollarization of the economy due to digital assets.

Recall that in June, RBI Vice President T. Rabi Sankar suggested: CBDC It can completely replace private virtual currencies, including Bitcoin.

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