Why is RBI Governor Shaktikanta Das not believing in cryptocurrencies?

RBI Governor Shaktikanta Das, while addressing the media on Friday, has once again talked about banning cryptocurrency. He vehemently opposes cryptocurrencies, saying that crypto is ‘nothing but gambling’ and that the ‘value of cryptocurrencies is just a hoax.’

RBI Governor said that those who support crypto call it an asset or a financial product, but it has no inherent value and is not even a ‘tulip’ Neither is. 

RBI Governor’s statement about crypto is not surprising but the question arises that why the central bank of the country does not trust crypto. Is it possible that the opposition to crypto may hold us back from the rest of the world in the path of development. 

To understand this matter, we have talked to Ajit Khurana, a cryptocurrency expert and the founder of Reflexical. But before that you need to know some basic things about crypto currency.

What is cryptocurrency 
Cryptocurrency is a type of digital currency. There are many types of cryptocurrencies such as bitcoin, ethereum and litecoin, all of which have their own characteristics.

Why do people want to invest in crypto 
When we asked Ajit Khurana the answer to this question, he told that people rush into crypto to avoid ‘FOMO’ i.e. feeling of missing out. Investing from. He says that people do not want to miss this opportunity of earning crores by investing a few thousand rupees. This is the reason why the crypto market is growing so fast. 

After this we wanted to know from Ajit that when the citizens of the country are seeing benefits then why RBI is opposing crypto and talking about banning it.
On this Ajit says that the control of official currency or currency in any country,  how much currency will be printed, what kind of currency will be used for economic works, how the payment system will work, things like that are decided by the government or the central bank.

Ajit told, ‘If people in the system suddenly start showing trust in some other currency, then it is a matter of trouble for the Central Bank and the country’s economy. It is the same with cryptocurrency, because it is an alternative payment system, so people who are more inclined towards bitcoin and cryptocurrency means they consider it better money than dollar, rupee, pound. 

If many people start believing this, then it increases the possibility of deteriorating the work of the Reserve Bank of India, and this problem is not only of India but of every country because every country wants to keep its currency, military and economy under control. Is. This is the biggest problem of the government. This is a big reason for opposition to crypto currency.’
Along with this, Ajit says that another reason for government’s opposition to crypto is its anonymity. It is not known who sent money to whom. Due to lack of data of those who deal in this, the government has a problem. 

Along with this, Ajit made it clear that cryptocurrency is not completely unknown. He furthers his point by giving an example, ‘Suppose I have a wallet inside which I have kept cryptocurrency and no one in the world knows it. But you have an account in some exchange, in that they send you a crypto of a few thousand rupees, your KYC has been done in that exchange. No one knows that I sent you the money but you know where the money came from and since your KYC is  i.e. your PAN number, Aadhaar number in the exchange it can be traced from where the money came so it cannot be considered completely unknown.’

Along with this, he told the third reason that there is no rule for this currency. The founder of the first cryptocurrency bitcoin had given it to the people by making software, but now in India itself more than 5000 people are making and selling cryptocurrency and in this way they have managed to raise crores of billions of rupees. 

But in the absence of rules and regulations, whether they have any value or not, those who have invested money, if they do not get anything in return, then to whom will they complain of fraud, how will the government help them, these are many questions. 

And due to lack of disclosure rule, no control can be imposed on the manufacturers of cryptocurrency. That is why our government is trying to make rules for this and RBI is also working on its own digital currency but it is not present in the market. Talks about banning other cryptocurrencies.
‘Banning is not the solution’
Ajit says government and RBI  Of course crypto But this kind of approach towards crypto is not correct and due to this our country may lag behind in the path of development, just as we have been left behind in taking advantage of internet and technology. He believes that in fact crypto is being considered as the currency of the future, in such a situation it is necessary that instead of banning it, the government should bring rules to control it.

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