This month has been too rude for the Cryptocurrency market as it has lost more than $400billion in May so far and around $1.5trillion from November last year. And the crash has not been stable till now.
The recent fall has been predominantly attributed to the descent of the Terra which was caused mainly for the downturn of the stablecoin TerraUSD.
The RBI has been alerting about the cryptocurrency market for a long time. On Monday, Shaktikanta Das, the governor of India’s Central Bank said that the RBI has forewarned about the crypto market and it is the result that is showing the exact situation of the market.
The Central bank has always been strong against the cryptocurrency market. Speaking about the regulations regarding such digital assets, the governor told in an interview if they had been regulating crypto people would have been asked what happened to the regulations.
He also added that a big question arrives about how do they maintain and regulate crypto? Das said that RBI has conveyed its position to the Central Government. He hopes that the reply will be more or less in sync with the central bank’s thinking. Last week also the top RBI officials told that cryptocurrencies can lead the Indian Economic market to dollarization.