Banning cryptocurrencies the most advisable choice, says RBI deputy governor

T Rabi Sankar, deputy governor of the Reserve Bank of India, stated on Monday that banning crypto currency is possibly the most advisable option available to India, according to news agency ANI.

“We have examined the arguments proffered by those advocating that cryptocurrencies should be regulated & found that none of them stands up to basic scrutiny,” ANI quoted Sankar as saying.

“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 be even be worse,” he said.

This comes only days after RBI Governor Shaktikanta Das stated that cryptocurrencies pose a threat to macroeconomic and financial stability, putting the central bank’s ability to cope with crisis on two fronts in jeopardy.

“All these factors lead to the conclusion that banning cryptocurrency is perhaps the most advisable choice open to India,” he added.

Last week, the country’s central bank chief issued a strong warning against investing in cryptocurrencies, claiming that they lacked the fundamental value of even a tulip, a reference to a 17th-century market bubble that engulfed the Netherlands.