Crypto currencies are akin Ponzi schemes: RBI Dy. Guv
Crypto currencies are akin Ponzi schemes: RBI Dy. Guv
Advocates banning them
New Delhi, Feb. 14 (Delhi Crown): Crypto currencies are just like Ponzi schemes and banning them is perhaps the most advisable choice open to India, said Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar on Monday.
“We have examined the arguments proffered by those advocating Crypto currencies should be regulated & found that none of them stands up to basic scrutiny,” Sankar reportedly said.
The RBI deputy governor went on to the extent of equating Crypto currencies with Ponzi schemes.
“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. They are akin to Ponzi schemes, and may even be worse,” he added.
Sankar’s assertion comes days after RBI governor Shaktikanta Das had said that Crypto currencies were a threat to macroeconomy and financial stability, thereby undermining the central bank’s ability to deal with challenges on two fronts.
“Private cryptocurrencies or whatever name you call it are a threat to our macroeconomic stability and financial stability. They will undermine the RBI’s ability to deal with issues of financial stability and macroeconomic stability,” Das had said.
