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The Reserve Bank of India Governor has called on the Government to ban or limit crypto, but recongnizes that global collaboration is needed to achieve that goal.

India’s Finance Minister Nirmala Sitharaman said in a speech at the Lok Sabha, the lower house of India’s bicameral Parliament, that crypto is a danger to international regulatory arbitrage and that they should be blocked or banned.

Sitharam explained that any attempt to regulate or ban crypto should be global because cryptocurrencies are borderless. But the decentralized nature of crypto transactions and the fact that they operate outside of the traditional financial system has made task extremely hard for regulators.

According to Sitharaman, there should be international collaboration to assess the risks and benefits that cryptocurrencies pose for the global monetary policy. She further stated that, unlike fiat money, cryptocurrencies have no value beyond being used for speculation.

“The value of fiat currencies is anchored by monetary policy and their status as legal tender. However, the value of cryptocurrencies rests solely on the speculations and expectations of high returns that are not well anchored,”

The Reserve Bank of Africa is therefore recommending formulating a proper legislative framework to limit the cryptocurrency industry. Even though the finance minister thinks they should be banned.

What to expect from this

With recent calls all over the globe on the need for regulations to be set on cryptocurrency, the indian reserve bank has advised that global collaboration is neered to achieve such regulation while also proposing a proper legislative framework that would limit cryptocurrency industry.

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