Comparing cryptocurrencies to a Ponzi scheme, the Deputy Governor of India’s Central Bank T Rabi Sankar said that banning cryptocurrencies like Bitcoin (BTC) is ‘perhaps the most advisable choice open to India’. “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,” he said. RBI Deputy Governor Slams Cryptocurrencies Appearing at the 17th Annual Banking Technology Conference and Awards of the Indian Banks’ Association (IBA), Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar said: “We have seen that crypto-technology is underpinned by a philosophy to evade government controls. Cryptocurrencies have specifically been developed to bypass the regulated financial system. These should be reasons enough to treat them with caution.” “Banning cryptocurrency is perhaps the most advisable choice open to India and there are strong reasons to keep cryptocurrencies away from the formal financial system,” he added. Cryptocurrencies can destabilize the banking and currency system, monetary authority, and the overall government control on the economy, according to him. Apart from that, ‘private cryptocurrencies’ can also undermine financial integrity, especially the usual Know-Your-Customer and Anti-Money Laundering and Combating of Financing of Terrorism Regulations, and could pote...
