Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar says central bank digital currencies could “kill whatever little case there could be” for cryptocurrencies, like bitcoin and ether.
RBI Deputy Governor T. Rabi Sankar talked about the potential impact of central bank digital currencies (CBDCs) on cryptocurrencies, like bitcoin and ether, at a webinar organized by the International Monetary Fund (IMF), local media reported Friday.
He was quoted as saying:
We (RBI) believe that CBDCs would actually be able to kill whatever little case there could be for private cryptocurrencies.
By “private cryptocurrencies,” the Indian government and the central bank refer to all non-government-issued cryptocurrencies, including bitcoin and ether.
Sankar explained the central bank’s stance that cryptocurrencies should not be permitted “just because they are backed by hi-tech.” He added:
Any tool that can be used for good can also be put to undesirable uses. Technology, at the end of the day, is a tool.
Most cryptocurrencies have an equilibrium value of exactly zero, but they are still priced sometimes at fantastical levels.
