The crypto community is definitely getting mixed signals from Mint Street to North Block. In a latest body blow to the digital token enthusiasts, RBI Deputy Governor made it amply clear of the central bank’s stand; ban crypto – it is the most advisable choice open to India.
Speaking at an event organized by Indian Banking Association, RBI Dy Governor T Rabi Sankar made some scathing attacks while assessing cryptocurrencies and making a case to outlaw them.
- There does not appear to be any case to allow cryptocurrencies to be legitimized in India
- Claims that cryptocurrencies must be permitted for blockchain technology to thrive are not sustainable.
- Reserve Bank has been warning investors of the risks for nearly a decade
- That cryptocurrencies should not be banned because a ban is unlikely to be effective is a superficial argument. One might as well argue that drug trafficking is a rampant phenomenon despite a ban, and therefore drug trafficking should be legalised and regulated
- Cryptocurrencies have specifically been developed to bypass the regulated financial system.
- Cryptocurrencies threaten the financial sovereignty of a country and make it susceptible to strategic manipulation by private corporations.
- "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.
- All these factors lead to the conclusion that banning cryptocurrency is perhaps the most advisable choice open to India