Crypto mania can have Tulip mania-like outcome, warns RBI after SEC approves Bitcoin ETF
SEC) approved US-listed exchange-traded funds (ETFs) that track Bitcoin, Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday warned that crypto mania can have a Tulip mania-like outcome.
«We are all familiar with the Dutch term Tulip mania in the Netherlands. I don't think the world, emerging markets in particular, can afford crypto mania which can have a similar outcome,» Das said at Mint BFSI Summit.
While making it clear that RBI's position on crypto remains unchanged, irrespective of who does what, Das said, «Just because somebody is doing something, we are not here to emulate them....travelling down that path will create huge risks which, going forward, will be very very difficult to contain.»
Paving the way for inflow of billions of dollars in cryptocurrency, the US has approved 11 Bitcoin spot ETFs. For Indian investors, the Bitcoin ETF will provide an opportunity to include crypto in their portfolio via the LRS route.
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View Details»The central bank chief reminded investors that the US regulator has also issued a necessary cautionary warning to investors to be careful and has also pointed out the riskiness involved.
«It is the speculative nature of the product which enables some people to perhaps make big money for sometime. But the majority of the people are not going to make money all the time. In fact, the majority of the people will encounter losses because it is entirely a speculative product,» he said, without directly commenting on the US SEC's decision.
Das has repeatedly warned that cryptocurrencies have no
