Cryptocurrencies are nothing but gambling

The Indian central bank has had a negative attitude towards cryptocurrencies for some time now. For example, a few months ago you could read in the crypto news that the central bank stated that crypto currency has no value at all. According to the bank, it cannot be seen as a currency nor as a financial asset.

It even goes so far that the governor of India’s central bank, Shaktikanta Das, believes that crypto could cause the next financial crisis. For that reason, he is referring to a ban on cryptocurrencies such as bitcoin (BTC) and ethereum (ETH).

Crypto is also called gambling

During the day a speech at a conference on Friday 13 January Das indicated that the attitude of the central bank is unchanged. He announced that digital currencies cannot be considered a financial product and should be treated as ‘gambling activities’:

“Every asset, every financial product must have an underlying value, but in the case of crypto, there is no underlying value, not even a tulip, and the rise in the market price is based on appearances. So anything without any underlying value, the value of which depends entirely on appearances, is nothing but 100% speculation or to put it very bluntly, it is gambling.”

Indian CBDC

Earlier you could read that the bankers were not yet convinced of an Indian central bank digital currency (CBDC). The e-rupee would mainly provide extra work for the bank’s accountants, without really benefiting them. According to the bankers, the current payment system works well in this area and for that reason no CBDC would be needed in the country.

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According to Das, CBDCs are the future of money and their application could save on logistics and printing costs. Here’s what Das said about the CBDCs:

“I think CBDC is the future of money as many central banks are on it and we cannot be left behind. At the same time, we must ensure that its technology is robust and highly secure.”

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