{"id":4875,"date":"2022-06-12T13:31:12","date_gmt":"2022-06-12T13:31:12","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=4875"},"modified":"2022-06-12T13:31:12","modified_gmt":"2022-06-12T13:31:12","slug":"indian-governments-chief-economic-adviser-warns-of-danger-in-crypto-defi-without-regulation","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4875","title":{"rendered":"Indian Government&#8217;s Chief Economic Adviser Warns of Danger in Crypto, Defi Without Regulation"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>The Indian government\u2019s chief economic adviser has warned about innovations like crypto and decentralized finance (defi) in the absence of regulation. \u201cWe may not be fully aware or comprehend the kind of forces we are unleashing ourselves,\u201d he opined.<\/strong><\/p>\n<h2>Indian Government\u2019s Chief Economic Adviser Skeptical of Crypto, Defi, Decentralization<\/h2>\n<p>The Indian government\u2019s chief economic adviser (CEA), V. Anantha Nageswaran, reportedly warned about the danger of crypto and the risks posed by its lack of regulation Thursday at an Assocham event. Referring to cryptocurrency, he was quoted by local media as saying:<\/p>\n<p>The more decentralized they become and the absence of a watchdog or a centralized regulatory authority also means that there is a world of Caribbean pirates or a world of \u2018winner take all\u2019 in terms of being able to really take it all from somebody else.<\/p>\n<p>The government\u2019s economic adviser explained that he agreed with Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar on crypto and decentralized finance (defi). The RBI official has warned that there currently appears to be a case of regulatory arbitrage with regard to crypto and defi rather than true financial innovation.<\/p>\n<p>Referring to defi, Nageswaran opined:<\/p>\n<p>In my opinion, while it is considered innovation, I would reserve my judgement whether it is truly innovative or truly disruptive in a positive sense or is it something that we will come to regret.<\/p>\n<p>Commenting on whether cryptocurrency could be an alternative to fiat currencies, the economic adviser stressed that it has \u201cto satisfy many purposes.\u201d He elaborated: \u201cIt has to be a store of value, it has to have widespread acceptability, and it has to be a unit of account \u2026 In all these cases the new \u2018innovations\u2019 such as crypto or defi are yet to pass the test.\u201d<\/p>\n<p>Nageswaran concluded:<\/p>\n<p>So I wouldn\u2019t be very excited by them because sometimes we may not be fully aware or comprehend the kind of forces we are unleashing ourselves.<\/p>\n<p>\u201cI would be somewhat guarded in my welcome of some of these fintech-based disruptions like defi and crypto etc,\u201d he noted.<\/p>\n<p>The Indian government is currently working on the country\u2019s crypto policy. The finance ministry has consulted with the International Monetary Fund (IMF) and the World Bank on crypto regulations. Last week, the Securities and Exchange Board of India (SEBI) said that the decentralized nature of crypto makes regulation challenging.<\/p>\n<p>Meanwhile, the Indian central bank remains skeptical of crypto. On Friday, RBI Governor Shaktikanta Das cautioned investors against trading in cryptocurrencies, reiterating that they \u201cpose huge risks to financial stability.\u201d<\/p>\n<p><em><strong>What do you think about the comments by the Indian government\u2019s chief economic adviser? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons, Michael Vi<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/indian-governments-chief-economic-adviser-warns-of-danger-in-crypto-defi-without-regulation\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Indian government\u2019s chief economic adviser has warned about innovations like crypto and decentralized finance (defi) in the absence of regulation. \u201cWe may not be fully aware or comprehend the kind of forces we are unleashing ourselves,\u201d he opined. Indian Government\u2019s Chief Economic Adviser Skeptical of Crypto, Defi, Decentralization The Indian government\u2019s chief economic adviser [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4876,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-4875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4875"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4875\/revisions"}],"predecessor-version":[{"id":4877,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4875\/revisions\/4877"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4876"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}