RBI DG Rabi Sankar Advocates For Complete Ban On Cryptocurrencies In India

New Delhi: The Deputy Governor of Reserve Bank of India (RBI) has advocated a complete ban on cryptocurrency in the country citing that it has no intrinsic value and can be worse than a Ponzi scheme.

He further said that after examining the arguments which advocated the regulation of cryptocurrencies, we found that none of them have passed the basic test.

While speaking at the Indian Banks Association 17th Annual Banking Technology Conference and Awards, on Monday, the Deputy Governor, T Rabi Sankar demolished all the arguments for allowing cryptocurrencies in India as none of them pass basic scrutiny.

''It will be good if cryptocurrencies are banned,'' he added.

He further said that crypto-technology cryptocurrencies have been developed specifically to bypass the regulated financial system.

''We have also seen that cryptocurrency cannot be defined as currency, asset or commodity. They do not have any underlying cash flow,'' he said.

He said these should be enough reasons to keep such things away from the formal financial system. In addition, they undermine financial integrity, particularly the KYC regime and AML/CFT regulations, and at least potentially facilitate anti-social activities.

Notably, even before this, the banker's bank has spoken against the recognition of cryptocurrencies. It has repeatedly said that recognizing it would threaten the security of the country. Apart from this, it is also not good for economic and financial stability.

Earlier, Finance Minister Nirmala Sitharaman had said in the Rajya Sabha that imposition of tax does not mean that cryptocurrency has become legal.

She asserted that the government has only taxed the profits of cryptocurrencies. The government has not taken any step to legalize, ban or regulate it.

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