Raghuram Rajan: Cryptos may pose same problem as unregulated chit funds

By Lokmat English Desk | Published: November 24, 2021 04:53 PM2021-11-24T16:53:40+5:302021-11-24T16:55:47+5:30

“Cryptos may pose the same problem as unregulated chit funds, which take money from people and go bust, a ...

Raghuram Rajan: Cryptos may pose same problem as unregulated chit funds | Raghuram Rajan: Cryptos may pose same problem as unregulated chit funds

Raghuram Rajan: Cryptos may pose same problem as unregulated chit funds

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“Cryptos may pose the same problem as unregulated chit funds, which take money from people and go bust, a lot of people holding crypto assets are going to be aggrieved,” Former Reserve Bank of India (RBI) governor Raghuram Rajan said.

There are currently over 6,000 cryptocurrencies in the world market. But he also predicts that one or two of these cryptocurrencies would survive and most will perish.

In an interview to CNBC, Raghuram Rajan said, "Only one or two, or at most a handful, would survive, Rajan said. “If things have value only because they will be pricier down the line, that’s a bubble”. “…A lot of cryptos have value only because there is a greater fool out there willing to buy.” "

Former RBI Governor Raghuram Rajan has said that most cryptocurrencies have no fixed value. There are currently over 6,000 cryptocurrencies worldwide. Among them, cryptocurrencies like Bitcoin, Etherium, Tether, Dodgecoin are more popular.

A cryptocurrency bill will be introduced in India

The winter session of Parliament will begin on November 29. The government is preparing to introduce a total of 26 bills. It is learned that a cryptocurrency bill will be introduced in this. Therefore, there will be a wide-ranging discussion on cryptocurrency in the coming winter session. The convention will introduce a bill to regulate cryptocurrency and ban all private cryptocurrencies, along with 25 other laws.

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