The governor of India’s central bank, the Reserve Bank of India (RBI), says the “ongoing U.S. banking crisis” clearly demonstrates the risks cryptocurrency poses to the financial system. The central bank chief added that the “Indian economy remains resilient,” emphasizing that the “worst of inflation is behind us.”
India’s Central Bank Governor on Crypto Risks and U.S. Banking Crisis
The governor of India’s central bank, the Reserve Bank of India (RBI), cautioned about the risks cryptocurrencies pose to the financial system while commenting on the U.S. banking turmoil at the 17th K P Hormis Commemorative Lecture on Friday. RBI Governor Shaktikanta Das said:
Ongoing U.S. banking crisis drives home the importance of robust regulators, sustainable growth and clearly shows risks of private cryptocurrencies to the financial system.
Das was referring to the recent collapses of several banks in the U.S. Last Sunday, Signature Bank was seized by the New York State Department of Financial Services while Silicon Valley Bank was closed down by regulators last Friday. They became the second and third largest banks in the U.S. to fail. In addition, Silvergate Bank announced voluntary liquidation earlier this month.