Raghuram Rajan Warns About Crypto

Former Reserve Bank Governor Raghuram Rajan warned against investing in net-currency (cryptocurrency) from the stage of the World Economic Forum. Reminding of the rate at which crypto prices have fallen worldwide in the last one year, he said, as a result, investors will be aware of its ‘real price’ in the coming days. By understanding that, they can make decisions about this new technology and use it.

Repeated warnings 

Before this, many times warnings about crypto have been heard in Rajan’s voice. Current RBI Governor Shaktikanta Das has also repeatedly warned people. Center has imposed tax on crypto transactions. Speaking at the Forum on World Markets, Rajan said, “The idea that government-run currencies will collapse and cryptos will hold their value is nothing but delusional.” In his words, “The common currency has won rather long term.”

Raghuram Rajan
image source:https://images.livemint.com/img/2023/01/19/600×338/DAVOS-WEF-2023-83_1674086629248_1674086629248_1674086637504_1674086637504.jpg

It should be noted that in the last year, the price of crypto currency has decreased by 1.4 lakh billion dollars all over the world. One of the most popular of these, Bitcoin, has lost 60% of its value. It increased by 26 percent in January. But the market is still considered volatile. On top of that, news of several hundred crores worth of crypto fraud has come to light in India this week.

Experts say the collapse and bankruptcy filings of cryptocurrency exchanges in the US in November have added to the uncertainty surrounding the market. Investigators have accused the founders of fraud in the company, which was valued at $32 billion a year ago.

The upcoming Lok Sabha polls will be the target of the budget

The poor and the marginalized will come up again and again as a ‘political message’ in the Modi government’s last full budget on February 1 before the Lok Sabha polls next year. Prime Minister Narendra Modi said in a meeting of BJP’s National Working Committee this week that there are only 400 days left for the Lok Sabha polls. Modi government’s message of development should be delivered reaching the door of everyone in the society, especially the marginalized people. 

According to official sources, Finance Minister Nirmala Sitharaman will present the budget for the next financial year in the Parliament after just ten days. There will be emphasis on the development of the village, strengthening the infrastructure there.

Political messages will emerge in every chapter of the budget speech. It will mostly talk about villages, poor and marginal people. Vote banks in states like Karnataka, Madhya Pradesh, Chhattisgarh and Rajasthan where the BJP will have to give a tough test before the Lok Sabha polls will also be targeted.


Sources in the Ministry of Finance claim that due to the reduction in the income of rural people due to the Covid-lockdown, the increase in the price of goods and the increase in the cost of buying essential fuels like diesel for farmers, wounds have been created in the rural economy. The government will try to mend them in the upcoming budget.