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India’s Reserve Bank’s Deputy Governor Calls For a Ban on Cryptocurrency

Cryptocurrencies, according to RBI deputy governor T. Rabi Sankar, are identical to Ponzi schemes. He has argued that outlawing cryptocurrency is preferable to regulating them. The comments came at a time when India is slapping a 30% tax on transactions involving bitcoin. The tax will be included in the 2022 Union Budget of India.

On February 14, Sankar delivered a keynote lecture in which he stated that cryptocurrencies were neither money, an asset, nor a commodity. To regulate digital currencies is to advocate for their use as a kind of currency’s store of value, according to Sankar.

The restriction would, however, have only a limited impact on completely eliminating the industry, because some people would continue to use these assets. Cryptocurrencies offer a financial and monetary risk, according to the authority. More people will start using these assets as a replacement for the Rupee, which will lead to a decrease in their use of the currency.

India’s crypto laws

India’s crypto regulatory system is in a state of flux. Legislators and cryptocurrency companies have called for a clear regulatory framework, but none has emerged. Businesses dealing with cryptocurrencies would be more likely to stay on the straight and narrow if they had this level of certainty.

Before deciding whether or not to ban or regulate cryptocurrencies, India’s Minister of Finance, Nirmala Sitharaman, stated she will consult with the relevant agencies first. The Indian government has tested a digital rupee in anticipation of a ban or regulation. Sitharaman stated earlier this month that a digital rupee might be introduced by 2023, which would help enhance India’s economy.

Highlights

  • According to Reserve Bank of India deputy governor, cryptocurrency should be outlawed.
  • Cryptocurrencies, according to a top authority, are a Ponzi scam.
  • In the Union Budget 2022, India slapped a 30% tax on cryptocurrencies.

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