The reserve bank of India classified cryptocurrencies to the number of systemic risks, despite the strict criticism of
the Central Bank of India for many years has been sharply criticizing cryptocurrencies; Earlier, he stated that CBDCS could prevent the introduction of digital assets.
In his last report on financial stability published on Thursday, the reserve bank of India, or RBI, again expressed his skeptical attitude to digital assets, writing the following: "We must remember the risks on the horizon. Cryptocurrencies are a clear danger. Everything that creates value based on fiction, without any base, is simply speculation under the exquisite name." The report states that decentralized cryptocurrencies are designed to go around the financial system and all its control mechanisms, "including mechanisms for the fight against money laundering, financial terrorism and" Know your client. " In a tone similar to the previous report, RBI states that private currencies often lead to instability over time and undermine sovereign control over the money supply. However, despite all these harsh words, cryptocurrencies, possibly irony of fate, are at the very bottom of the agenda RBI by risks. According to the results of a study of systemic risks, such factors as global growth factors, rising prices for raw materials and geopolitical tension are considered as events with a high level of influence that can threaten the integrity of the global financial system. Similar: RBI seems to want to ban cryptocurrencies, but not for the reasons that you might think. On the other hand, the risks associated with digital assets were in the lower part of the scale of suspended risks, being associated with a decrease in sovereign ratings and only slightly higher than the political uncertainty and threat of terrorism. Partly RBI explains this restriction of risks by the fact that digital assets occupy a relatively small place on a global scale, as well as their insufficient integration into traditional finances. Currently, cryptocurrencies account for from 0.4% to 1% of the total financial assets in the world, estimated at 469 trillion dollars. RBI has traditionally been one of the most skeptical central banks regarding the adoption of cryptocurrencies, claiming that the digital currencies of the Central Bank can “kill” private cryptocurrencies. Translated using www.deepl.com/translator (free version)