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  4. Banning cryptocurrency perhaps most advisable choice open to India: RBI Deputy Governor

Banning cryptocurrency perhaps most advisable choice open to India: RBI Deputy Governor

We have seen that crypto-technology is underpinned by a philosophy to evade government controls. Cryptocurrencies have specifically been developed to bypass the regulated financial system. These should be reason enough to treat them with caution, RBI Deputy Governor T Rabi Sankar said.

India TV News Desk Edited by: India TV News Desk New Delhi Updated on: February 14, 2022 22:03 IST
Representational image.
Image Source : FILE PHOTO

Representational image.

Highlights

  • Banning cryptocurrency is perhaps the most advisable choice open to India, says RBI Deputy Governor
  • Crypto-technology is underpinned by a philosophy to evade government controls, he said
  • Cryptocurrencies developed to bypass regulated financial system, RBI Deputy Guv said

Banning cryptocurrency is perhaps the most advisable choice open to India, said RBI Deputy Governor T Rabi Sankar adding they have examined the arguments proffered by those advocating that cryptocurrencies should be regulated and found that none of them stands up to basic scrutiny.

These should be reason enough to keep them away from the formal financial system. Additionally, they undermine financial integrity, especially the KYC regime & AML/CFT regulations & at least potentially facilitate anti-social activities, Sankar said.

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 even be worse, he mentioned.

We have seen that crypto-technology is underpinned by a philosophy to evade government controls. Cryptocurrencies have specifically been developed to bypass the regulated financial system. These should be reason enough to treat them with caution, Sankar said.

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