Cryptocurrencies could cause the next financial crisis, Indian central bank head warns

Published

3 years ago

December 21, 2022

admin

Nurphoto | Getty Images

The next financial crisis will be caused by private cryptocurrencies, if these assets are allowed to grow, the head of India’s central bank warned on Wednesday.

“Cryptocurrencies have… huge inherent risks for our macroeconomic and financial stability,” Shaktikanta Das, governor of the Reserve Bank of India, said at an event. He pointed to the recent collapse of FTX as an example.

Das said his main concern is that cryptocurrencies don’t have any underlying value, calling them “speculative” and adding that he thinks they should be banned.

“It [private cryptocurrency trade] is a hundred percent speculative activity, and I would still hold the view that it should be prohibited … because, if it is allowed to grow, if you try to regulate it and allow it to grow, please mark my words, the next financial crisis will come from private cryptocurrencies,” Das said.

Private cryptocurrencies refer to digital coins such as bitcoin.

Das’ comments come as the central bank pushes to introduce its own digital version of the Indian rupee. The Reserve Bank of India began a pilot program for the digital rupee on Dec. 1 for retail use in select cities. Certain users are able to transact using the digital rupee via apps and mobile wallets.

The digital rupee is a type of central bank digital currency (CBDC). Many central banks around the world are looking into issuing digital versions of their own currency.

Das said CBDCs can expedite international money transfers and reduce the need for logistics, such as printing notes.

China’s central bank is furthest ahead globally on the development of a CBDC. Beijing has been trialing use of its digital yuan in the real world since late 2020, extending its availability to more users this year.

Digital currency regulation was thrust further into the spotlight this year after a $1.3 trillion crash in the value of the cryptocurrency market and the high-profile collapse of the FTX exchange.

China has effectively banned cryptocurrency trade.

The Indian government is working on cryptocurrency legislation that could prohibit some activity around digital currencies, while creating a legal framework for the central bank’s digital currency.

Central banks often said cryptocurrencies did not pose a major risk to the economy, when they represented a much smaller asset class. But a growing number of voices warn of the potential macroeconomic impact, particularly if cryptocurrencies go unregulated.

Jon Cunliffe, the Bank of England’s deputy governor for financial stability, said in July that cryptocurrencies may not be “integrated enough” into the financial system to be an “immediate systemic risk.” He noted that he thinks the boundaries between the crypto world and the traditional financial system will “increasingly become blurred.”

The U.S. Treasury Department said in October that “crypto-asset activities could pose risks to the stability of the U.S. financial system” and emphasized the need for regulation.

Technology

Nvidia CEO to Cramer: Synopsys deal is ‘culmination of everything I showed you’ over the years

Published

3 hours ago

December 2, 2025

admin

Nvidia CEO to Cramer: Synopsys deal is 'culmination of everything I showed you' over the years

Technology

Why Jim Cramer thinks the AI trade is breaking up

Published

4 hours ago

December 1, 2025

admin

Why Jim Cramer thinks the AI trade is breaking up

After years of largely trading together, stocks related to artificial intelligence and the data center are starting to move in different directions, CNBC’s Jim Cramer said.

“The Google complex cohort roared while the OpenAI complex got hammered. Meanwhile, the hyperscalers with great balance sheets held up much better than the ones with strained balance sheets,” he said. “Just keep in mind that things change very fast in the AI space, so what was true last month might not necessarily stay true this month or next year.”

He pinpointed a difference in the performance of AI companies linked to OpenAI — like Nvidia, Oracle, Microsoft and AMD — and those affiliated with Alphabet — such as Broadcom and Celestica. He said latter cohort has seen a boost as some investors start to favor the newest iteration Gemini over ChatGPT. Wall Street Street at large is also growing concerned about OpenAI’s massive spending commitments, Cramer continued.

Hyperscalers with strong balance sheets are starting to pull ahead, he continued, noting that companies like Alphabet, Meta and Amazon have the capacity to keep spending big on AI. However, Cramer added, Oracle, CoreWeave and Nebius have more strained balance sheets.

But he warned that the AI space is volatile and said it’s possible another platform will surpass Gemini. Cramer also said he doesn’t want to “paint with too broad of a brush here.” For example, he noted that Nvidia got hit over worries about newfound competition and its ties to OpenAI. However, the AI giant also just reported a blowout quarter with strong guidance and demand for its products still exceeded supply, he continued.

The diversification of the AI trade is a good thing, Cramer suggested, saying it’s positive that investors are starting to think more critically about which of these companies “deserves to be winners.”

“In general, I think it’s actually pretty healthy. I’m never going to root against higher stock prices,” he said. “But there was always something unsettling about the entire AI cohort rallying in lockstep.”

Jim Cramer’s Guide to Investing

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer The CNBC Investing Club holds shares of Nvidia, Meta, Microsoft and Broadcom.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com

Technology

Apple names former Microsoft, Google exec to succeed retiring AI chief

Published

5 hours ago

December 1, 2025

admin

Apple names former Microsoft, Google exec to succeed retiring AI chief

John Giannandrea.

David Paul Morris | Bloomberg | Getty Images

Apple’s AI chief is stepping down, the company announced Monday in the most visible shake up yet to the iPhone maker’s artificial intelligence group since launching its Apple Intelligence suite in 2024.

John Giannandrea, who held the position since joining the company in 2018, will be replaced by Amar Subramanya, an AI researcher who most recently worked for Microsoft and was previously part of Google’s DeepMind AI unit, according to his LinkedIn profile.

Giannandrea was a senior vice president and reported to Apple CEO Tim Cook. He will continue to serve as an advisor until retiring next spring, Apple said.

The change comes as experts this year have said Apple has fallen behind its tech peers in artificial intelligence, a tech field that has been reinvigorated since OpenAI launched ChatGPT in 2022.

Apple Intelligence, which was intended to put Apple alongside AI leaders like OpenAI and Google, has not been well-reviewed by users and critics. Earlier this year, one of its most critical aspects, a significantly improved Siri assistant, was delayed until 2026, signaling development challenges.

Subramanya will serve as Apple’s vice president of AI, and will report to software chief Craig Federighi, the company said.

In a statement, Cook said Federighi has already been playing a key role in Apple’s AI efforts.

“In addition to growing his leadership team and AI responsibilities with Amar’s joining, Craig has been instrumental in driving our AI efforts, including overseeing our work to bring a more personalized Siri to users next year,” Cook said in a statement.

Subramanya will lead teams working on Apple’s foundation models, research and AI safety. Other teams previously under Giannandrea will move under COO Sabih Khan and services chief Eddy Cue, Apple said.

Although Apple shares are up 16% in 2025, they have lagged many other big tech companies as investors say the iPhone maker has fallen behind its peers that are investing billions into AI data centers, chips and frontier models.

Apple said in August that it was “significantly increasing” the amount it spends on AI, and Cook has said it’s a “profound” technology. Apple has struck a deal with leader OpenAI to integrate ChatGPT into some of its products, like Siri.

But Apple is playing a different game than companies like Microsoft, Google, and Meta. It’s spending much less on infrastructure for the technology. Apple also prefers its AI to run on its devices, instead of communicating back to more powerful computers in the cloud.

Apple this year also saw Jony Ive, its legendary hardware designer who helped late co-founder Steve Jobs invent the iPhone, sell his startup io for $6.4 billion to OpenAI, with the intention of helping the AI lab release its own hardware.

Analysts say that Apple has built a loyalty moat among its customers since the iPhone launched in 2007, but AI-driven hardware is on its way, with Ive and OpenAI CEO Sam Altman last month saying that they’ve already completed their first prototypes and could reveal them in two years or less.

WATCH: Apple will gain more AI functionality over time, says D.A. Davidson’s Gil Luria