India’s RBI Dy Governor calls crypto worse than a Ponzi Scheme, calls for outright ban

Feb 15, 2022

The cryptocurrency tax was the first step taken by the Government of India to bring cryptocurrencies under some form of regulation. However, it seems more is in store, especially taking the statements by the country’s RBI Deputy Governor in context with crypto assets.

In one of the most strongly-worded statements, the RBI Deputy Governor labeled cryptocurrencies as Ponzi schemes and asked for a complete ban on cryptocurrencies.

Sankar gave his keynote address at Indian Banks’ Association (IBA’s) Annual Banking Technology Conference & Awards on February 14 said, Banning cryptocurrency is perhaps the most advisable choice open to India.

Sankar indicted crypto as a system that has been designed to evade government controls and customized to bypass regulated financial systems–especially the Know-Your-Customer regime and AML/CFT regulations.

The RBI Deputy Governor labeled cryptocurrency as something which can never fit in the definition of a currency since it has no intrinsic value and neither underlying cash flows.

The Tulip mania occurred between November 1636 and February 1637, and the prices of Tulip rose by over 20 times. When the bubble collapsed, prices of tulips fell by over 99 percent.

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