The Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday, (October 20), reiterated the central bank's stance on the crypto ban. He spoke on day 1 of the three-day Kautilya Economic Conclave 2023.

"On crypto I have already spelt out our position very clearly, time and again and we continue with the same view. The IMF-BIS synthesis paper also points out the risks in crypto and crypto regulation, and what it means. Regulation is always on a scale of 0-10. Now, zero regulation will mean there is no regulation, it is free for all. 10 means you don’t allow it. And in between 0 and 10 it depends where you are," Das said.

The Finance Minister said no single country can succeed in regulating cryptocurrency alone and highlighted that the issue was taken up by India with the G20 group — an elite group of the world's top 20 economies. India hosted the Group of 20 countries this year.

"The G20 is now coming out with a template for the crypto world," she observed. Sitharaman has long championed the cause of setting up a framework for handling challenges related to crypto assets.

The RBI governor has used public platforms to express his disapproval of cryptos many times in the past.

In a press conference, after the third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in June this year, Das commented that enthusiasm and belief of cryptos being a great innovation is completely muted now. There is a great amount of caution and concern around cryptocurrencies with the realisation of it being a risk, he said.

Earlier, during the G20 Finance Ministers & Central Bank Governors meeting in March, Das highlighted the risks of legitimising these currencies. "On such matters, whether it is stablecoins or cryptocurrencies or whatever you call it, we need to fully understand what the risks are before legitimising them. We need to know, before entering the water, how many sharks are there inside the water. That is how I would put it in a very commonplace language and very bluntly."

Das' statements reiterate his long-standing belief that cryptocurrency not being an asset, and thus, not possess any underlying value.

Earlier in January this year, Governor Das even went to the extent of comparing crypto trading to "gambling" at an event organised by a private media house. Expanding his argument further, Das said that the definition of cryptocurrency remains unclear and high volatility in prices makes its use unreliable.

“RBI’s position is very clear, all cryptos should be banned. However, the technology of blockchain needs to be supported as it has so many other applications,” he said in Mumbai.

Das has long batted for the adoption of central bank digital currencies (CBDC), stating it to be the "most efficient and effective" way of payment, especially for cross-border transactions.

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First Published:Oct 20, 2023 8:48 PM IST