Yesterday, in a keynote address at the Indian Banks Association, the Deputy Governor of Reserve Bank of India, T Rabi Sankar, put cryptocurrencies in the same category as Ponzi schemes.
He shares that “cryptocurrencies are not amenable to definition as a currency, asset or commodity; they have no underlying cash flows, they have no intrinsic value – all these should be reason enough to keep them away from the formal financial system.”
Most of his reasoning revolved around “no intrinsic value” of cryptocurrencies and that they “were developed to curb the financial regulation system”. He also argues that “Bitcoin is built on a weird mix of speculative greed bolstered by a utopian cyberlibertarian ideology and likened it to a digital gold rush”.
Coming from the DG of the Central Bank of India, these comments are indeed worrisome for the Indian crypto community. However, yesterday, during a press conference, the FM of India said the government and the RBI are “on board and discussing the issues of cryptos and regulation”.
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