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Most Existing Cryptocurrencies Won’t Survive, Says Former RBI Governor Raghuram Rajan

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Shivang Singh
Shivang Singhhttps://therealityhunt.live/
The best way to predict the future is to create it.

New Delhi: Former RBI Governor Raghuram Rajan said on Wednesday that of the roughly 6,000 cryptocurrencies in existence today, only one or two, or at most, only a handful will survive.

In an interview with CNBC-TV18, the former governor of the RBI said, “If things are only valuable because they’re going to be more expensive down the line, it’s a bubble.” “A lot of cryptos are only valuable because there is a bigger jerk ready to buy.” He compared the current craze for cryptocurrencies to the tulip craze in the Netherlands in the 17th century.

“Cryptos can pose the same problem as unregulated chit funds that take money from people and go bankrupt, a lot of people with crypto assets are going to be harmed,” he said.

According to Rajan, it wasn’t like cryptocurrencies had no value, just that most of them had no permanent value. In addition, some of them would survive to provide payments, especially cross-border payments.

Rajan was not the only one voicing his concerns about cryptocurrency transactions in India. RBI Governor Shaktikanta Das also recently issued cryptocurrency trading warnings. Das in his speech spoke in favor of a strong and formal framework to regulate cryptocurrency transactions in India.

The Center is ready to introduce a bill to regulate cryptocurrencies during the winter season of Parliament. A comprehensive digital currency bill is expected to be tabled for Cabinet approval.

Rajan also said, “In the United States, crypto is a $ 2.5 trillion problem that no one wants to regulate,” adding that the problem was in part because regulators did not fully understand this space. and how to regulate it. What governments can insist on is to get information from crypto entities, when crypto entities get too big the government can take a closer look to make sure there is no fraud. . This is a situation where at best you can send warnings to the general public, ”he added.

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