‘It is bad that there is no hope or space for crypto to grow in India for the next few years’

Crypto startup founder reacts to recent RBI Governor’s crypto bashing

Most central bankers on a global scale have been watchful of cryptocurrencies and RBI Governor Shaktikanta Das has been no different.

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While speaking at the BFSI Insight Summit organised by the Business Standard, Das has once more warned about the unregulated currency and said that it presents a “huge inherent risk for our macroeconomic and financial stability”.

He also said, “the unchecked growth of private cryptocurrencies could lead to a financial crisis”.

Here Kumar Gaurav, Founder & CEO of Founder and CEO of Cashaa, a crypto startup that offers a single bank account for fiat and cryptocurrency, and the service is available for individuals and business banking, shared his reaction with The Tech Panda.

“At Cashaa, we bank over more than 500 crypto companies which includes almost every major brand in the space who are generating good volume, like Binance to Bitbns. In 6 years of my career in Cashaa, I have talked to numerous central bankers, and I can feel the pain on both sides. No one wants to lose the power, but eventually, it’s happening, and we can’t do anything about it other than embrace it,” he says.

“We should not be surprised if a Central banker does not like #Bitcoin. This is how it is supposed to be.

“It is bad that there is no hope or space for crypto to grow in India for the next few years,” he adds.

While mentioning that the world has seen much happening in the world of crypto in the past year, Das made it clear that his views on cryptocurrencies weren’t favourable.

“I hold the view that it should be prohibited because if it is allowed to grow with regulations the next financial crisis will come from private cryptocurrency,” he said in an exclusive interview with CNBC-TV18.

Read more: Crypto crisis: Could there be a silver lining for ‘those who were waiting for the right time to invest in their projects of interest’?

His views include that private crypto originates from ‘breaking the system’ and not believing in the regulated financial world. Secondly, he finds cryptocurrency with absolutely no underlying basis and no clarity on what public good or purpose they serve. Lastly, he said it’s speculative nature makes it a risky asset.

In May, Finance Minister Nirmala Sitharaman said that India will not rush into any decision on cryptocurrencies and will take a ‘well-considered view’ after proposing a 30% tax on income from crypto and NFTs in the Union Budget.