Cryptocurrencies pose huge financial stability risks in the economy, Reserve Bank of India (RBI) Governor Shaktikanta Das said on June 9.
“We have already conveyed our stance (on cryptocurrencies) to the government. They pose huge risks to financial stability,” Das said at an event in Mumbai.
The central bank will wait for the government consultation paper on cryptocurrencies to come out, the governor added.
The RBI has been cautioning investors regarding trading in cryptocurrencies amid the ongoing crypto market crash. Das has repeatedly conveyed his stance that trading in cryptocurrencies involves a great deal of risk and may lead to instability in the financial market.
Further, Das said that the central bank will come out with guidelines on digital lending “soon.”
He acknowledged the problems borrowers are facing after taking loans from illegal lending apps.The RBI governor also said that the country’s current account deficit looks “sustainable” and can be financed by normal capital flows.