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Today in Crypto: RBI Governor Says India’s Crypto Warnings Led to People Avoiding It; Hardware Wallets See Boost in Sales After Hacks

Shaktikanta Das, the Reserve Bank of India (RBI) governor, said people were persuaded to avoid crypto because of the bank’s warnings — a positive outcome to him, Coindesk wrote Tuesday (Aug. 23).

He said he was “happy” they’d sent the warning signals, and knew many people hadn’t invested because of the bank’s caution and concern.

He also said crypto could make problems for the bank’s ability to manage monetary policy. The RBI hasn’t been shy about voicing its concerns about the digital assets, and Deputy Governor T. Rabi Sankar said there could be an argument for simply outright banning cryptocurrency in India.

Meanwhile, the crypto industry has been seeing a spate of hacks and bankruptcy for years now, but that has added to sales for hardware wallets, Bloomberg wrote.

The wallets have been useful for customers trying to protect their crypto assets. Hardware wallets are distinct from others because they keep a user’s private keys, the passwords needed to access blockchain assets, offline.

Ledger, a French company, reported a 400% surge in day-over-day sales in the day after a $5.2 million hack having to do with digital wallets on the Solana blockchain. And Hong Kong’s Ellipal saw a 30% boost in wallet sales after that hack.

Elsewhere, the U.S. Department of Justice has charged three people in a crypto scam that allegedly got them over $4 million, Coindesk wrote.

Esteban Cabrera Da Corte, Luis Hernandez Gonzalez and Asdrubal Ramirez Meza were charged with stealing identities and using them to buy cryptocurrency in 2020.

The purchases were reportedly funded through bank transfers. And after they allegedly bought the crypto, the suspects disputed the transactions with the banks to trick them into reversing the transfers. Then the suspects would reportedly redeposit the money into the accounts they controlled.

Finally, German regulator Bafin has issued a warning on the risks behind crypto assets, saying they don’t fall under deposit insurance protection.

That means investors could lose all their money. Germany’s rules say that getting one’s money back depends on the details of insolvency law and the conditions of the service, with recent collapses like that of Celsius Network leading to “messy” bankruptcy cases where ex-customers have to fight through long legal proceedings to get their money back.

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About: The findings in PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed the responses from 9,904 consumers in Australia, Germany, the U.K. and the U.S. and showed strong demand for a single multifunctional super apps rather than using dozens of individuals ones.


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