reserve Bank of India Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that cryptocurrencies pose a huge risk to financial stability and monetary stability. He stressed that this could lead to a situation where the central bank would lose control over the money supply in the economy. “I believe this is something that should not be allowed to dominate the financial system,” Das said. This poses a huge risk to financial stability. This poses a huge risk to monetary stability. It also poses a risk to the banking system.
Due to this, a crisis may arise
It could also create a situation where the central bank would lose control over the money supply in the economy, he said at the Peterson Institute for International Economics, a leading think-tank. Das said that if the central bank loses control over the money supply in the economy, then how will the cash available in the system be checked. He further said that in times of crisis, the central bank controls inflation by controlling the money supply.
There should be international understanding on this
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