Private cryptos will trigger next financial crisis if allowed to grow: RBI Governor Shaktikanta Das

NEW DELHI: As millions of investors face uncertainty in global crypto meltdown, the Reserve Bank of India (RBI) Governor Shaktikanta Das said on Wednesday that the next financial crisis will come from crypto collapse if private digital coins are allowed to grow.

Addressing a group of banking sector leaders and lawmakers, Das emphasised that cryptocurrencies have no "underlying value" and pose great risks for global macroeconomic and financial stability.

"After the development of the last one year, including the latest episode surrounding FTX, I don't think we need to say anything more," Das said.

"Crypto or private cryptocurrency is a fashionable way of describing what is otherwise a 100 per cent speculative activity," he added.

After the collapse of crypto exchange FTX, US authorities have arrested its former CEO San Bankman-Fried in the Bahamas and officially charged him with defrauding equity investors. (IANS)

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