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Private Cryptocurrencies A Big Threat To Stability, Says RBI Governor; Bitcoin, Ethereum Rise

Private Cryptocurrencies A Big Threat To Stability, Says RBI Governor; Bitcoin, Ethereum Rise

The RBI governor warned investors that cryptocurrencies have no underlying asset. But major coins such as Bitcoin, Ethereum, Cardano and Binance Coin saw prices rise

“Private Cryptocurrencies Are A Big Threat To Our Financial And Macroeconomic Stability”: RBI Governor
“Private Cryptocurrencies Are A Big Threat To Our Financial And Macroeconomic Stability”: RBI Governor

In India, the Reserve Bank of India (RBI) once again warned investors of the risks of private cryptocurrencies in India. Speaking at a Press meeting on the monetary policy committee outcome, Shaktikanta Das, RI governor, said, “As far as cryptocurrencies are concerned, the RBI stance is very clear. Private cryptocurrencies are a big threat to our financial and macroeconomic stability. They will undermine RBI's ability to deal with issues related to financial stability.” He also warned investors that “cryptocurrencies have no underlying (asset). Not even a tulip.” He was referring to the speculation-driven tulip mania in Europe, especially Holland, in the 17th century, which ended in a spectacular crash. 

Financial Services Companies Get Ready For Crypto Assets 

However, in other parts of the world, there are more and more indications of increased acceptance of cryptocurrencies, BlackRock, the world’s largest asset manager, is preparing to offer its clients a cryptocurrency trading service, reported CoinDesk. The asset management company manages over $10 trillion in assets. It is expected that the company will offer crypto trading through Aladdin (which is short for Asset, Liability, Debt and Derivative Investment Network), its integrated investment management platform, the report stated.  

Recently, many large financial services companies such as Visa and PayPal have started laying the ground to offer crypto investments and trading options to their clients in the future. Policymakers are also actively formulating frameworks in this regard. In January, the International Monetary Fund (IMF) stated in a blog that crypto assets were no longer on the fringe of the financial system and that I was time to adopt a comprehensive and coordinated global regulatory framework to guide national regulation and supervision and mitigate the financial stability risks stemming from the crypto ecosystem. 

Bitcoin, Ethereum See Price Rise 

At 5.14pm, the global crypto market cap was up by 2.41 per cent at $2.00 trillion, while the crypto trading volume rose to $86.51 billion, according to Coinmarketcap.com. 

Bitcoin (BTC), the world’s oldest cryptocurrency, was trading with a gain of 3 per cent at $45,040.34 at 5.14pm. Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, was also trading with a gain of 3.75 per cent at $3,260.73. 

Among other major coins, Cardano (ADA) was up by 2.05 per cent at $1.21. Binance Coin (BNB) was up by 1.75 per cent at $426.97, while Solana (SOL) saw a rise of 0.36 per cent at $114.02.  

The top gainer in 24 hours was sonic Token (SONIC), which was up by 2,479.1 per cent at $0.00007592. The crypto currency that lost the most Doge Rise Up (DOGERISEUP), which saw its price come down a huge 92.21 per cent to slid to in the past 24 hours, according to coinmarketcap data. 

Meme Coins And DeFi 

Dogecoin (DOGE) was up by 0.95 per cent at $0.1593. Its volume to market cap ratio stands at 0.04837. Rival Shiba Inu (SHIB) was also up by 4.4 per cent at $0.00003322.  

Dogelon Mars (ELON) was trading with a gain of 2.21 per cent at $0.000001125. Floki Inu (FLOKI), however, continued his downward movement, sliding by 2.43 per cent at $0.00005213, while Samoyed Coin (SAMO) saw a big rise of 10.76 per cent at $0.02998. In the DeFi segment, YFI (yearn.finance) was trading with a gain of 1.83 per cent at $25,983.03. Terra (LUNA), which was down by 0.52 per cent at about 8.30 in the morning, picket up 2.58 per cent to reach $56.93, at 5.30 pm, as per coinmarketcap data.  

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