The Reserve Bank of India’s deputy governor, T Rabi Sankar, has called for a ban on cryptocurrencies in India, saying that they are similar to Ponzi schemes or worse. Listing the demerits associated with cryptocurrencies – which the government is still evaluating whether or not to formalise as a legal tender – Sankar said banning cryptocurrencies is “perhaps the most advisable choice open to India.”
“We have also seen that cryptocurrencies are not amenable to definition as a currency, asset or commodity; they have no underlying cash flows, they have no intrinsic value; that they are akin to Ponzi Schemes, and may even be worse,” the RBI deputy governor lashed out at the cryptocurrency system while speaking at the Indian Banks Association 17th Annual Banking Technology Conference and Awards.
In very strong words, Sankar dismissed the idea that alternate coins, such as Bitcoin, should ever become a part of India’s formal financial system. The comments of the RBI deputy governor come at a time when the Indian government is planning to introduce taxation on cryptocurrency transactions in the country. But, at the same time, there is a big ongoing debate on whether or not cryptocurrencies should be banned.
For Sankar, banning them is the most advisable option and to back his opinion, the RBI deputy governor narrated different factors that raise concerns around the private cryptocurrency system.
According to Sankar, the technology behind cryptocurrencies is underpinned…
