Former RBI (Reserve Bank of India) governor Mr. Raghuram Rajan recently said that only a few handful of cryptocurrencies that exist today might survive in the near future. As per Rajan, people holds cryptocurrencies for two reasons: store of value and an asset which might appreciate; and for use in payments.
“Do we really need 6,000 cryptocurrencies to do payments? One or two, may be a handful, that is going to survive to be used for payments even if the technology is so useful that it is a substitute for cash and currency….That would suggest that most cryptos are unlikely to survive with high values going forward,” Rajan told CNBC – TV18.
Rajan further stated, it doesn’t mean that cryptocurrencies had no value at all and that most of them did not have permanent value. He said, “what governments can insist on is getting information from crypto entities, when entities get too big, government can examine them more closely to ensure there isn’t fraud. This is a situation where at best you can send warnings to the broader public.”