Former Governor of Bank of India (RBI) Raghuram Rajan believes that of the 6,000 cryptocurrencys that will exist today, most will perish.
Only one or two, or most, will survive, said Rajan. “If everything has value just because they will become a pricier on the phone, it’s a bubble,” he told CNBC-TV18. “… Many Crypto has value just because there are bigger stupid people out there who want to buy.”
Rajan compare FAD at this time in Cryptocurrency to Tulip Mania in the 17th century Netherlands. “Crypto can cause the same problem as unregulated Chit funds, which take money from people and go bankrupt, many people hold crypto assets will be harmed,” he said.
Not as if Cryptocurrency has no value at all, said Rajan, adding that most of them don’t have a permanent value. Also, some of them will survive to provide payments, especially cross-border payments, he said.
“In the US, Crypto is a $ 2.5 trillion problem that no one really wants to be arranged,” he said.
For India, said Rajan, the center must allow the underlying blockchain technology to develop. The way blockchain transactions are much cheaper, especially on the border, he said.
The government is likely to display a bill in the parliamentary winter session, scheduled to start from November 29, to all bars except some private cryptocurrency and create a framework for regulating the digital currency issued by the RBI.
Cryptocurrency and official Digital Currency Bill Regulation, 2021, registered for an introduction to Lok Sabha for winter sessions.
This seeks to “make a facilitative framework for the creation of the official digital currency” which will be issued by the central bank. “This is also trying to ban all personal cryptocurrency in India, however, this allows the exception to promote the underlying Cryptocurrency technology and its use,” read the introduction of bills on the website of Lok Sabha.
