RBI Governor Underlines ‘Threat’ From Crypto
RBI Governor Shaktikanta Das demanded banning cryptocurrencies in India because their growth will result in the RBI “losing control” of the Indian economy.
Das stated at a press conference that legalising cryptocurrency in India may result in the ‘dollarisation’ of the Indian economy. In relation to the digital rupee, the RBI’s digital currency, Das stated that banks’ IT systems must be robust and focused on data privacy in order to create a profitable environment for the digital currency. Shaktikanta Das’ remarks are consistent with the RBI’s stated position on cryptocurrencies.
Das stated that the RBI has not lost sight of the importance of focusing on inflation. “Core inflation is still above 6%, which is a cause for concern… That is not a comfortable number to deal with,” Das said.
Das added that the four percent inflation target does not need to be revisited and that the current inflation framework provides the monetary policy committee with a lot of flexibility. “If the current geopolitical conflict continues as it is, rates will be higher for a longer period of time around the world,” he added.
Noting that the impact of interest rate hikes on inflation takes seven to eight months, Shaktikanta Das stated that there are signs that wholesale credit is increasing. “I think going forward, we should see more wholesale demand going up,” he said.
(With inputs from Shikha Singh)
You need to login in order to Like
