Former RBI Governor Raghuram Rajan said of the roughly 6,000 cryptocurrencies in existence today, only one or two, or at most, only a handful would survive.
“If things are only valuable because they’re going to be more expensive down the line, it’s a bubble,” Rajan said. CNBC-TV18, “… a lot of cryptos are only valuable because there is a bigger jerk ready to buy.”
“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.
“In the United States, crypto is a $ 2.5 billion problem that no one really wants to regulate,” he said, adding that part of the problem was that regulators did not fully understand. this space and how to regulate it.
“What governments can insist on is getting 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 said.
Rajan said the Indian government must allow the underlying blockchain technology to flourish. He said blockchain transaction methods were much cheaper, especially across borders.
He didn’t know if bitcoins would create a currency problem.
“If more people buy bitcoin than they mine in India, there may be a currency problem,” he said.
(Edited by : Anshul)
First publication: STI