Abstract

Suddenly cryptocurrencies (cryptos) are all over – on social media, on our TV screens and on the frontpages of newspapers. New and new types of cryptos are mushrooming every day. At global conferences, we hear experts speak excitedly about the tantalizing possibilities of cryptos. Millions around the world are rushing to invest in them, driven by fear of missing out even as they have little understanding of the underlying risks.

This investment frenzy is triggering concerns in governments about consumer safety as also about cryptos becoming conduits for illegal activity such as money laundering, drug trafficking and terrorism financing.

Central banks on their part are worried that cryptos will impair their monetary sovereignty and financial stability. At the same time, over 80 central banks are reportedly in the process of launching their own central bank digital currencies (CBDCs). Here again, advanced economy central banks are more circumspect about the costs and benefits of CBDCs while emerging and developing countries are moving forward briskly, evidently driven by both fear and opportunity.

This kaleidoscope of excitement, innovation, investment, confusion, anxiety and ignorance raises several questions in the curious mind about whether cryptos are just a passing phase or the next big thing that will have a transformative impact on the quality of life people around the world.

The focus of the Round Table led by Dr Subbarao will be on making sense of many questions surrounding cryptocurrencies from the point of view of central banks.

About the Speaker

Duvvuri Subbarao served as Governor of the Reserve Bank of India (RBI) for five years (2008-13). Prior to that, he was Finance Secretary to the Government of India (2007-08) and Secretary to the Prime Minister’s Economic Advisory Council (2005-07).

Subbarao joined the Indian Administrative Service (IAS) in 1972, topping the highly competitive civil services entry examination in that year. As a career civil servant, he worked in various positions in the state government of Andhra Pradesh and in the federal government of India. He was a Lead Economist in the World Bank (1999 – 2004).

Subbarao studied at the Indian Institute of Technology, Kanpur, the Ohio State University and at MIT.

Subbarao was alternate governor for India on the Governing Boards of both the World Bank and the IMF. As Finance Secretary to Government of India and later as Governor of RBI, he participated in G-20 meetings and the meetings of the Bank for International Settlements.

Subbarao’s book “Who Moved My Interest Rate” chronicling his experiences in leading the Reserve Bank of India through five turbulent year is best known for the way he explained the policy dilemmas and challenges facing an emerging economy central bank in a globalized world.

After stepping down as Governor, RBI, Subbarao was a Distinguished Visiting Fellow at the National University of Singapore (2014-18), at the University of Pennsylvania (2019-20), and most recently at the Nanyang Technological University.