Head of the Indian Central Bank: US Banking Crisis Clearly Illustrates Danger Impact of Crypto on the Financial System

The governor of India central bank

the Reserve Bank of India (RBI), said the “ongoing U.S. banking crisis” plainly highlights the threats bitcoin poses to the financial system. The head of the central bank stated that “the Indian economy continues to be resilient,” highlighting the fact that “the worst of inflation is behind us.”

Governor of the Indian Central Bank on Crypto Threats and the U.S. Financial Crisis

At the 17th K P Hormis Memorial Lecture on Friday, the governor of India’s central bank, the Reserve Bank of India (RBI), issued a warning against the dangers that cryptocurrencies represent to the financial system. He was speaking about the turbulence in American banks. Governor of the RBI Shaktikanta Das said

” The ongoing banking crisis in the United States underscores the value of strong regulations, sustainable growth, and amply demonstrates the dangers of private cryptocurrency to the financial system. ,,

Das was making reference to the recent failures of numerous American banks. The New York State Department of Financial Services seized Signature Bank last Sunday, while last Friday, regulators shut down Silicon Valley Bank. They ended up failing as the second and third biggest banks in the United States. Meanwhile, earlier this month, Silvergate Bank made a voluntary liquidation announcement.

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Sen. Elizabeth Warren (D-MA), who blamed the demise of Signature Bank on its admission of bitcoin clients without adequate safeguards, thinks that regulatory measures against banks that accept cryptocurrency are tied to cryptocurrencies.

The governor of the Indian central bank emphasised that the US banking crisis highlights the “need for careful asset liability management.” Moreover, Das stated:

” The Indian economy is still robust. The worst of inflation is behind us. ”

Das, who on Wednesday received the Central Banking Awards 2023 Governor of the Year award, has frequently highlighted the dangers of cryptocurrency. The head of the Indian central bank claims that cryptocurrencies not only substantially jeopardise the macroeconomic and financial stability of India but also seriously impair the RBI’s ability to set monetary policy and oversee the nation’s monetary system.