{"id":5415,"date":"2022-07-04T17:42:49","date_gmt":"2022-07-04T17:42:49","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=5415"},"modified":"2022-07-04T17:42:51","modified_gmt":"2022-07-04T17:42:51","slug":"indian-central-bank-rbi-cryptocurrencies-are-a-clear-danger-financial-stability-risks-likely-to-grow","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5415","title":{"rendered":"Indian Central Bank RBI: Cryptocurrencies Are a Clear Danger \u2014 Financial Stability Risks Likely to Grow"},"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>India\u2019s central bank, the Reserve Bank of India (RBI), sees cryptocurrencies as \u201ca clear danger.\u201d However, the financial stability risks posed by crypto assets currently appear to be \u201climited.\u201d<\/strong><\/p>\n<h2>RBI on Crypto\u2019s Danger and Financial Stability Risks<\/h2>\n<p>The Reserve Bank of India (RBI) released the 25th issue of its Financial Stability Report (FSR) Thursday. RBI Governor Shaktikanta Das wrote:<\/p>\n<p>Cryptocurrencies are a clear danger. Anything that derives value based on make believe, without any underlying, is just speculation under a sophisticated name.<\/p>\n<p>The RBI chief further opined: \u201cWhile technology has supported the reach of the financial sector and its benefits must be fully harnessed, its potential to disrupt financial stability has to be guarded against.\u201d<\/p>\n<p>The Indian central bank\u2019s report explores financial stability risks posed by crypto assets, citing various studies, including the work by the Financial Stability Board (FSB). The report states:<\/p>\n<p>The risks from cryptoassets to financial stability appear to be currently limited as the overall size is small (0.4 per cent of global financial assets).<\/p>\n<p>In addition, it notes that crypto\u2019s \u201cinterconnectedness with the traditional financial system is restricted.\u201d<\/p>\n<p>Nonetheless, the report adds:<\/p>\n<p>The associated risks are, however, likely to grow as these assets and the ecosystem supporting their growth are evolving.<\/p>\n<p>The report also discusses stablecoins and central bank digital currencies (CBDCs). The RBI noted: \u201cThe risks from stablecoins that claim to maintain a stable value against existing fiat currencies require close monitoring, in particular.\u201d<\/p>\n<p>The RBI statement on financial stability and crypto echoes the comments on the subject by Christine Lagarde, the president of the European Central Bank (ECB). \u201cCrypto assets and decentralized finance (defi) have the potential to pose real risks to financial stability,\u201d she said in June. \u201cThis would be particularly the case if the rapid growth of crypto-asset markets and services continue \u2026 and the interconnectedness with both the traditional financial sector and the broader economy is intensified.\u201d<\/p>\n<p><em><strong>What do you think about the comments by the Indian central bank? 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<\/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-central-bank-rbi-cryptocurrencies-are-a-clear-danger-financial-stability-risks-likely-to-grow\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s central bank, the Reserve Bank of India (RBI), sees cryptocurrencies as \u201ca clear danger.\u201d However, the financial stability risks posed by crypto assets currently appear to be \u201climited.\u201d RBI on Crypto\u2019s Danger and Financial Stability Risks The Reserve Bank of India (RBI) released the 25th issue of its Financial Stability Report (FSR) Thursday. RBI [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5416,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-5415","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\/5415","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=5415"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5415\/revisions"}],"predecessor-version":[{"id":5417,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5415\/revisions\/5417"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5416"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}