The next financial crisis will be caused by “private cryptocurrencies,” according to Reserve Bank of India (RBI) Governor Shaktikanta Das, who spoke at a banking and finance event on Wednesday. The head of the central bank stated that simply regulating and allowing the crypto industry to grow would not be enough to prevent a financial disaster. “Mark my words: private cryptocurrencies will cause the next financial crisis… They have no underlying value and pose significant risks to our macroeconomic and financial stability,” he explained. In India, the term “private cryptocurrencies” is frequently used to distinguish cryptocurrencies such as Bitcoin and Ether that are not issued by the central bank. In December, the RBI launched a retail CBDC pilot.
