India’s ostensible demand and publicised interest in crypto currencies are likely exaggerated, and potentially a marketing ploy to lure more people to a novel asset class unapproved by the regulator, Reserve Bank of India Governor Shaktikanta Das said. Das also reiterated his concerns over cryptos and added that the regulator’s recommendations were being actively looked at by the government.
“In terms of the amount that has been invested, it’s definitely growing and anecdotally we hear so many things,” Das said while speaking to a financial publication. “But I am not so sure about the numbers that are being quoted. Because, whatever information we have, with a reasonable amount of confidence I can say that the number of participants in the crypto market seems exaggerated.”
Bulk of the investors, or about 70% or even more, have invested about ₹1,000- ₹3,000. Perhaps there is an effort to enrol as many people as possible, Das said.
The RBI governor also reiterated his concerns over the financial instability such investments could cause and stated that the government was actively considering its recommendations.
“People are doing a certain activity; as a central bank we have serious concerns from the macroeconomic and financial stability points of view,” he said. “We have given our detailed suggestions to the government on dealing with the issue. As far as I know, the matter is under active consideration of the government and it will decide.”
In the past few months, Indian investments in cryptocurrencies hit the $10 billion mark. Currently, around 105 million citizens, or 7.9% of Indians, have invested in cryptocurrencies through Indian exchanges, as per data compiled by CREBACO, a research firm.