RBI’s Bulletin Warns Retail Investors Of Crypto’s Lack Of Stability

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The RBI’s monthly bulletin for May 2024 covers the significant impact and inherent risks of Defi and cryptocurrencies within the financial system. It has warned the retail investors of the crypto ecosystem’s lack of accountability and stability. The Indian central bank has also cautioned that some cryptocurrency systems may also be prone to crisis without safeguards. The bulletin also read that the interest in cryptocurrencies is driven by speculative motive rather than a means of payment for real economic transactions. India, currently lacks a specific regulatory framework for cryptos, while SEBI recently submitted its regulatory proposal for crypto suggesting that different regulators manage specific aspects of cryptocurrency trading.