RBI Says Cryptocurrency Is Ponzi Scheme, Should Be Banned In India Right Away
With the ongoing conundrum around the crypto laws in India and the government mulling to legitimising them, Deputy Governor of RBI, T Rabi Sankar on Monday said that he believes banning cryptocurrencies is the most advisable choice for the country.
This comes after the Government, in its Budget session earlier in the month proposed to tax cryptocurrencies, which led to apprehensions about the Govt maybe making it legal in the country.
RBI DG on Banning Cryptos in India
Delivering a speech at the Indian Banks Association 17th Annual Banking Technology Conference and Awards on February 14, 2022, RBI’s Deputy Governor clarified his stance on the crypto scene in the country.
He said, “We have examined the arguments proffered by those advocating that cryptocurrencies should be regulated and found that none of them stand up to basic scrutiny.
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.”
T Rabi Sankar compared cryptocurrencies to Ponzi schemes, terming them to possibly be even worse compared to them, and stated that maybe the best option for the country would be to ban them.
RBI Governor on Cryptos
Last week, RBI’s Governor Shaktikanta Das underlined concerns related to the using cryptocurrencies and warned people from investing in them.
Speaking at the post monetary policy committee press meet, Das said, “I think it is my duty to tell investors that what they are investing in cryptocurrencies, they should keep in mind that they are investing at their own risk. They should keep in mind that these cryptocurrencies have no underlying (asset). Not even a tulip.”
In its Budget 2022, the Union Government proposed to install a 30% tax on private digital assets, starting Apr 1, 2022 or the upcoming financial year but as of now, has not conveyed its stance on such digital currencies like cryptos, being legal or illegal.
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