Shaktikanta Das' warnings against cryptocurrency continue; here's what RBI governor has said so far

Reserve Bank of India Governor Shaktikanta Das 

once again warned against the risks of cryptocurrencies. Calling cryptocurrencies a clear danger, Das said that commodities that derive value on the base make-believe, without any underlying, are just a result of speculation.

"We must be mindful of the emerging risks on the horizon. Cryptocurrencies are a clear danger. Anything that derives value based on make believe, without any underlying, is just speculation under a sophisticated name," Das said.

Also read: View | The crypto crash was inevitable and necessary for the idealists to come of age

The governor's comments come as the central bank's 25th Financial Stability Report (FSR) highlighted the threat of cryptocurrencies and that they should attract drastic action from national authorities. This is not the first time that the RBI has highlighted the dangers of cryptocurrency, having once banned it in the country before the ban was overturned by the Supreme Court. This is not the first time that Das has spoken out about cryptocurrencies.

Just weeks ago, Das said that cryptocurrencies pose a huge risk to financial stability in the country.

Also read: Cryptos could lead to 'Dollarisation of Economy', say RBI officials; what does it mean?

"We have already conveyed our stance (on cryptocurrencies) to the government. They pose huge risks to financial stability,” Das had said at an event in Mumbai recently.

Earlier in the year, when the cryptocurrencies crashed, Das had warned about the dangers of investing in something that has no underlying value.

“We have been cautioning against crypto and look at what has happened to the crypto market now. Had we been regulating it already, then people would have raised questions about what happened to regulations," Das told CNBC-TV18 in an exclusive interview.

“This is something whose underlying (value) is nothing. There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial and macroeconomic stability of India," the RBI Governor had added.

The cryptocurrency market has shed nearly two-thirds of its market cap, shrinking from $3 trillion to just under $1 trillion in recent weeks. The world’s biggest cryptocurrency token, Bitcoin, has fallen to $19,379.50 from all-time highs of $68,990.90. The token is down 34.94 percent over the past month and down nearly 60 percent from year to date.

Das had earlier compared the hype around cryptocurrencies to the tulip mania bubble. "Private cryptocurrency is a huge threat to macro-economic stability and financial stability...investors should keep this in mind that they are investing at their own risk. And these cryptocurrencies have no underlying (value) - not even a tulip," he warned.