Banning crypto is the best option for India: RBI Deputy Governor

“They pose a threat to the financial sovereignty of a country and make them susceptible to strategic manipulation by the private companies that make up these currencies or the governments that control them. All of these factors lead to the conclusion that banning cryptocurrencies may be The best option for India.” RBI Deputy Governor said.

He further added that cryptocurrencies have been developed specifically to bypass the regulated financial system and are similar or worse than Ponzi schemes.

Shankar, while addressing an event, said, “Cryptocurrencies are not amenable to definition as a currency, asset or commodity; they have no underlying cash flow, they have no intrinsic value; they are similar to Ponzi schemes. , and it could be worse,” Shankar said. by Indian Banks Association

What is Ponzi Scheme?

Ponzi scheme is a form of fraud that lures investors and pays profits to old investors with money from new investors. It has little or no legitimate earnings.

Shankar further added, “We have seen that crypto-technology is based on a philosophy to avoid government control. Cryptocurrencies have been developed specifically to bypass the regulated financial system. These have to be treated with caution. There should be enough reasons for that.”

“They undermine financial integrity, particularly the KYC regime and AML/CFT regulations, and at least potentially facilitate anti-social activities. More significantly, they ruin the monetary system, the monetary authority, the banking system.” Can (and if possible) , and the ability of the government in general to control the economy,” he said.

He further said that the RBI has “examined the arguments made by those that cryptocurrency should be regulated and found that none of them stood up to basic scrutiny.”