Feb 15,2022:Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar said on Monday that Cryptocurrencies are akin to Ponzi schemes or even worse and banning these is the most sensible option for India. There are strong reasons to keep cryptocurrencies away from the formal financial system, he said.
A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from new investors. It has little or no legitimate earnings.
Sankar further stated that crypto-technology is underpinned by a philosophy to evade Government controls. They have specifically been developed to bypass the regulated financial system. These should be reason enough to treat them with caution.”
Illicit transactions involving cryptocurrencies totaled $14 billion in 2021, he said while citing a Wall Street Journal report. There are about 15-20 million cryptocurrency investors in India, with total holdings of about ₹400 billion, as per industry estimates.
Cryptocurrency Is Like Ponzi Scheme: RBI Dy Governor
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